USDCHF Movement
For the 24 hours to 23:00 GMT, the USD declined 0.90% against the CHF and closed at 0.9344. The Swiss Franc gained ground after the SNB kept its benchmark interest rates unchanged at 0%, in line with market expectations in September. The central bank, further cautioned that Switzerland’s economic outlook has deteriorated considerably and trimmed its domestic growth forecast for 2014 to 1.5% from 2% and kept its inflation forecast steady at 0.1%. However, the Bank reduced its inflation projection to 0.2% and 0.5% for 2015 and 2016, respectively.
In other economic data, Swiss trade surplus narrowed to CHF1.39 billion in August, compared to a revised trade surplus of CHF3.90 billion in the prior month.
In the Asian session, at GMT0300, the pair is trading at 0.9344, with the USD trading flat from yesterday’s close.
The pair is expected to find support at 0.9309, and a fall through could take it to the next support level of 0.9275. The pair is expected to find its first resistance at 0.94, and a rise through could take it to the next resistance level of 0.9457.
Amid a lack of domestic economic data, investors would keenly await SNB’s Q3 Bulletin, due on Wednesday, to get more insights on the Swiss economy.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
