#CurrencyPairPrediction When comparing historical interest rate cycles for USD/CHF, it is important to analyze how the Federal Reserve's (Fed) interest rate decisions and the Swiss National Bank's (SNB) policies have influenced the exchange rate over time. Generally, the USD/CHF pair is impacted by the interest rate differential between the two central banks, as well as by broader economic conditions. 1. Fed Rate Hikes and USD Strength: When the Fed raises rates, the USD tends to strengthen, as higher rates often attract investment due to better returns on dollar-denominated assets. This puts upward pressure on the USD/CHF pair, making the USD more valuable relative to the CHF. 2. SNB's Neutral or Negative Rates: The SNB has historically kept interest rates low or even negative, particularly to combat deflationary pressures and maintain economic stability. This tends to weaken the CHF against other currencies, including the USD, since low or negative rates reduce the appeal of Swiss assets. 3. Market Sentiment and Risk Appetite: USD/CHF is also considered a "safe haven" pair, with the CHF being a traditional safe-haven currency during periods of global uncertainty. In times of market stress, the CHF may strengthen against the USD even if the Fed is raising rates, as investors flock to the perceived stability of Swiss assets. 4. Recent Cycles: During periods when the Fed has increased rates (e.g., in 2015-2018 and more recently in 2022), the USD tends to appreciate against the CHF. However, the SNB's cautious stance, including interventions in currency markets and maintaining low rates, often mitigates the extent of any CHF depreciation. In summary, the historical interest rate cycles for USD/CHF are characterized by the interaction of the Fed's rate hikes, the SNB's low/negative rates, and shifts in global risk sentiment, with the USD typically benefiting from rate hikes and the CHF gaining as a safe-haven currency during market turmoil.