USD/CHF Lower After FOMC, Overlooks SNB's Interest Rate Decision
- Swiss National Bank Keeps 3-Month Libor Target Range at 0.0% vs 0.0% estimated.
- USD/CHF Largely Unchanged Following the SNB’s Interest Rate Decision.
- Broad-Based US Dollar Weakness Post FOMC Meeting May Explain USD/CHF Drop
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The Swiss National Bank (SNB) announced its quarterly monetary policy decision to maintain the 3-month Swiss Libor Rate Target unchanged at zero percent. This was in line with economists’ expectations.
USD/CHFremained largely unchanged following the SNB’s interest rate decision to trade at 0.8942. The lack of volatility in the Swiss Franc against the US Dollar may be due to the overall trend in Swiss inflation data being in line with consensus forecasts for over a year, according to DailyFX Currency Strategist Ilya Spivak. He comments that this expectation going forward may argue against changes in the policy mix, as economists’ forecast inflation to be south of 1 percent through next year.
Broad-based US Dollar weakness on the back of the June FOMC Meeting may help explain USD/CHF’s decline preceding the SNB decision.
From a technical perspective, USD/CHF shows near-term support at 0.8901 (38.2% Fib ret.) and resistance at 0.8970 (14.6% Fib ret.).
USD/CHF 5 Minute Chart
Chart Created Using FXCM Marketscope 2.0
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Edward Hyon, DailyFX Research Team
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