Swiss Franc Extends Gains Below 0.8850 as Safe-Haven Flows Override Dovish SNB

As of June 5 the Swiss franc has extended its rally against the dollar despite fading odds of an SNB rate hike, driven by persistent geopolitical uncertainty and safe-haven demand. The pair climbed above 0.9000 on June 3 after strong US ADP and ISM services data, then reversed sharply below 0.8850 on June 4 following Israel-Lebanon ceasefire reports. Earlier support came from a Q1 GDP beat of +0.7% q/q and May manufacturing PMI of 57.3, while SNB Vice Chairman Schlegel signaled greater FX intervention readiness. Traders now watch whether the franc can sustain levels below 0.8850 or if verbal or direct SNB intervention caps further gains.