#CurrencyPairPrediction The size of central bank balance sheets, particularly those of the Federal Reserve (Fed) and the Swiss National Bank (SNB), plays a key role in influencing USD/CHF interest rate dynamics. When these central banks expand their balance sheets through asset purchases (quantitative easing), they inject liquidity into the financial system, which tends to lower short-term interest rates and can impact currency exchange rates. A larger Fed balance sheet often leads to lower U.S. interest rates, potentially weakening the USD relative to CHF. Conversely, if the SNB increases its balance sheet to weaken the CHF, it may lead to lower Swiss interest rates. The relative size and pace of balance sheet adjustments between the Fed and SNB can therefore influence the interest rate spread between the USD and CHF, affecting investor behavior and capital flows