USD/CHF: Swiss National Bank holds interest rate


USDCHF Movement

For the 24 hours to 23:00 GMT, the USD rose 2.52% against the CHF and closed at 0.9881.

On the data front, Switzerland’s trade surplus narrowed less-than-expected to CHF3.6 billion in February, compared to a revised trade surplus of CHF4.8 billion in the previous month.

The Swiss national Bank (SNB), in its interest rate decision, left its benchmark interest rate unchanged at -0.75% and increased its negative interest threshold exemption to 30 from 25. Meanwhile, the central bank slashed its growth forecast for 2020, with GDP growth likely to be negative for the year as a whole. It had earlier expected growth of 1.5% to 2%.

In the Asian session, at GMT0400, the pair is trading at 0.9807, with the USD trading 0.75% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9675, and a fall through could take it to the next support level of 0.9543. The pair is expected to find its first resistance at 0.9914, and a rise through could take it to the next resistance level of 1.0021.

Amid lack of macroeconomic releases in Switzerland today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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