USDCHF Movement
For the 24 hours to 23:00 GMT, the USD rose 0.34% against the CHF and closed at 0.8899.
The Swiss Franc lost ground after the Swiss National Bank (SNB) announced its decision to maintain the minimum exchange rate on the Franc at 1.20 per euro and its benchmark interest rate unchanged at zero, as widely expected. Additionally, the central bank indicated that the Swiss Franc is “still high”, and hence it would keep intervening in the foreign exchange markets to keep the Franc weak and to defend the currency’s 1.20 Francs peg to the Euro.
The SNB refrained from changing its forecasts for the current and coming years and predicted that economic growth in the country will record between 1.5% and 2.5% for 2013, while growth in the next year would be 2%. However, the central bank sounded cautious on the Gross Domestic Product (GDP) outlook in the very near term.
In the Asian session, at GMT0400, the pair is trading at 0.8901, with the USD trading tad higher from yesterday’s close.
The pair is expected to find support at 0.8863, and a fall through could take it to the next support level of 0.8824. The pair is expected to find its first resistance at 0.8925, and a rise through could take it to the next resistance level of 0.8948.
Trading trends in the pair today are expected to be determined by Switzerland’s producer prices data to be released later during the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
