USDCHF Movement
For the 24 hours to 23:00 GMT, the USD rose 0.98% against the CHF and closed at 0.8819, following the Fed’s decision to trim its stimulus measure by yet another $10 billion. Traders also cheered the Fed Chief, Janet Yellen’s comments that projected an interest-rate-hike by the mid of next year.
The Swiss Franc lost ground, after the ZEW survey reported that its index on economic expectations in Switzerland tumbled to a 6-month low reading of 19.0 in March, more than analysts’ call for a fall to 25.0, from previous month’s reading of 28.7.
Late Wednesday, the Swiss National Bank (SNB) President, Thomas Jordan, a day before the SNB’s interest rate decision, stated the market’s perception of Swiss Franc as a safe-haven currency poses a big challenge for monetary policy in the nation. Furthermore, he indicated that, despite the recent economic progress, the nation still remains far away from a full recovery.
In the Asian session, at GMT0400, the pair is trading at 0.8812, with the USD trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 0.8752, and a fall through could take it to the next support level of 0.8692. The pair is expected to find its first resistance at 0.8851, and a rise through could take it to the next resistance level of 0.8890.
Traders keenly await the SNB’s interest rate decision and Switzerland’s trade balance data, slated for release later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
