USDCHF Movement
For the 24 hours to 23:00 GMT, the USD declined 0.99% against the CHF and closed at 0.9611.
Yesterday, the SNB left its rate on sight deposits unchanged at record low of -0.75%. It also mentioned that the Swiss Franc still remained “significantly overvalued” against the Euro and reiterated that the central bank would intervene again in the foreign exchange markets if required.
Separately, the Swiss Government upgraded its 2015 economic growth forecast to 0.9%, from previous projection of 0.8%, but stressed that the Euro-zone’s continued economic recovery was crucial for the improvement in the nation’s economic situation. Meanwhile, it trimmed the country’s 2016 GDP growth estimate to 1.5% from 1.6%.
In the Asian session, at GMT0300, the pair is trading at 0.9604, with the USD trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 0.9551, and a fall through could take it to the next support level of 0.9498. The pair is expected to find its first resistance at 0.9692, and a rise through could take it to the next resistance level of 0.9779.
Moving ahead, investors would keep a close eye on the Swiss trade balance and the SNB’s Q3 quarterly bulletin report, scheduled in the next week, to get better insights about the nation’s economy.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
