USDCHF Movement
On Friday, the USD declined 0.10% against the CHF and closed at 0.8809. During the central bank’s annual general meeting in Bern, the Swiss National Bank (SNB) President, Thomas Jordan, stated the Swiss Franc still remains highly valued at current level. He further added that the central bank’s minimum exchange rate on the currency remains vital as a further appreciation in the Franc could pose a deflation threat to the Swiss economy. Furthermore, he confirmed the SNB’s 2% growth forecast for Switzerland in 2014 but at the same time cautioned that the “environment remains extremely challenging for both the Swiss economy and the central bank’s monetary policy.”
In the Asian session, at GMT0300, the pair is trading at 0.8820, with the USD trading 0.12% higher from Friday’s close.
The pair is expected to find support at 0.8806, and a fall through could take it to the next support level of 0.8793. The pair is expected to find its first resistance at 0.8829, and a rise through could take it to the next resistance level of 0.8839.
Amid lack of economic releases in Switzerland, traders are eyeing global economic news for further cues in the pair.
The currency pair is trading above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
