EUR/CHF recovers losses as SNB keeps door open for monetary policy adjustments

• EUR/CHF bounces back as the SNB warns of the trade war risk influenced by US tariffs.
• The SNB left interest rates steady at 0%, as expected.
• Investors shift focus to the German inflation data for September.

The EUR/CHF pair recovers losses and trades 0.15% higher to near 0.9350 during the European trading session on Thursday. The pair bounces back as Swiss National Bank (SNB) Chairman Martin Schlegel has kept the door open for further monetary policy expansion as "uncertainty surrounding inflation and economic development remains elevated" in the wake of tariffs imposed by the United States (US) on its trading partners.

SNB's Governing Board member Petra Tschudin has warned of "deteriorating Swiss economic outlook" due to US tariffs and sees the Unemployment Rate rising in the near term.

Earlier, the cross faced selling pressure after the SNB held interest rates at 0%, as expected, which led to a slight selling pressure in the EUR/CHF pair.

Meanwhile, the Euro (EUR) underperforms its peers on Thursday as uncertainty over the Russia-Ukraine war has escalated, following comments from US President Donald Trump, in a post on Truth.Social that Ukraine can win back all of the territory Russia has taken since its invasion. Trump added that it can be done with time, patience, and the financial support of Europe and, in particular, NATO.

Going forward, the major trigger for the Euro will be the preliminary Harmonized Index of Consumer Prices (HICP) data for September, which will be released on Tuesday. German inflation data will significantly influence market expectations for the European Central Bank's (ECB) monetary policy outlook.