#CurrencyPairPrediction Quantitative easing (QE) distorts the impact of interest rates on the USD/CHF exchange rate by weakening the traditional link between rate differentials and currency value. QE involves large-scale asset purchases by central banks, such as the Federal Reserve or the Swiss National Bank, which increase money supply and lower long-term interest rates even if short-term rates remain unchanged. When the U.S. engages in QE, it often leads to a weaker USD due to increased liquidity and lower yields, reducing its appeal to investors—even if nominal interest rates stay higher than in Switzerland. Similarly, if the SNB implements QE, it can put downward pressure on the CHF. This makes interpreting the USD/CHF exchange rate based solely on interest rate differences misleading during periods of QE. In summary, QE distorts USD/CHF rate dynamics by altering capital flows and investor behavior beyond what interest rate differentials alone would suggest.