18 Jun 2015
USD/CHF hits fresh monthly lows below 0.92 on SNB
FXStreet (Mumbai) - The Swiss currency extends its upbeat momentum and visited fresh four-week highs versus the US dollar in the European morning, pushing USD/CHF lower below 0.9200 levels, after the Swiss National Bank (SNB) kept its monetary policy untouched with the bench market rates left intact at record low of -0.75%.
USD/CHF drops from 0.9220 post SNB status-quo
Currently, the USD/CHF pair trades -0.29% lower at fresh four week lows of 0.9191, accelerating gains below 0.92 barrier. The Swiss franc strengthened and rose sharply higher versus its American counterpart following SNB monetary policy announcement.
The Swiss National Bank left its key policy rate unchanged, in line with expectations. The interest rate to be charged on sight deposit account balances remained at a record low of -0.75%. The target range for the three-month Libor was also unchanged, currently at between –1.25% and −0.25%.
The Swiss CPI posted a 0.2% increase in May m/m, compared with the decline of 0.2% seen in April, while markets had forecasted a 0.1% rise for the reported period. While the jobless rate dropped to 3.2% month-on-month, compared to 3.3% seen in the previous month.
Analysts had bet the gauge would come in at 3.2%.
SNB’s status-quo decision today comes in light of the recently released Swiss Q1 GDP data which revealed that soaring Swiss currency negatively impacts the country’s exports.
Moreover, broad based US dollar weakness also added to the losses in the USD/CHF pair. The dollar index which measures the greenback’s strength against its major peers, now trades -0.29% lower near fresh session lows of 94.15.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9223 (Today High) levels and above which it could extend gains to 0.9266 (May 18 High) levels. To the downside, immediate support might be located at 0.9191 (Today’s Low) levels and below that at 0.9140 levels.
USD/CHF drops from 0.9220 post SNB status-quo
Currently, the USD/CHF pair trades -0.29% lower at fresh four week lows of 0.9191, accelerating gains below 0.92 barrier. The Swiss franc strengthened and rose sharply higher versus its American counterpart following SNB monetary policy announcement.
The Swiss National Bank left its key policy rate unchanged, in line with expectations. The interest rate to be charged on sight deposit account balances remained at a record low of -0.75%. The target range for the three-month Libor was also unchanged, currently at between –1.25% and −0.25%.
The Swiss CPI posted a 0.2% increase in May m/m, compared with the decline of 0.2% seen in April, while markets had forecasted a 0.1% rise for the reported period. While the jobless rate dropped to 3.2% month-on-month, compared to 3.3% seen in the previous month.
Analysts had bet the gauge would come in at 3.2%.
SNB’s status-quo decision today comes in light of the recently released Swiss Q1 GDP data which revealed that soaring Swiss currency negatively impacts the country’s exports.
Moreover, broad based US dollar weakness also added to the losses in the USD/CHF pair. The dollar index which measures the greenback’s strength against its major peers, now trades -0.29% lower near fresh session lows of 94.15.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9223 (Today High) levels and above which it could extend gains to 0.9266 (May 18 High) levels. To the downside, immediate support might be located at 0.9191 (Today’s Low) levels and below that at 0.9140 levels.