USDCHF Movement
For the 24 hours to 23:00 GMT, the USD rose 0.38% against the CHF and closed at 0.9750.
Yesterday, the Swiss National Bank (SNB) held its key interest rate steady at -0.75%, meeting market expectations, citing strength in the local currency and an absence of price pressures. The SNB President, Thomas Jordan, stated that recent data indicated that the Swiss economy is on the road to recovery. Further, the SNB also reiterated that the Swiss Franc is still significantly overvalued and that it would remain active in the foreign exchange market as necessary.
Separately, the central bank kept its 2017 inflation forecast steady at 0.3% but trimmed its 2018 outlook to 0.3%, down by 0.1% and its 2019 forecast to 1.0% from 1.1%.
In the Asian session, at GMT0300, the pair is trading at 0.9749, with the USD trading marginally lower against the CHF from yesterday’s close.
The pair is expected to find support at 0.9713, and a fall through could take it to the next support level of 0.9677. The pair is expected to find its first resistance at 0.9778, and a rise through could take it to the next resistance level of 0.9807.
Next week, investors will look forward to a speech by the SNB President along with Switzerland’s trade balance figures.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
