18 Jun 2015
USD/CHF eyes May lows, key support
FXStreet (Córdoba) - The Swiss franc is rising for the second day in a row against the US dollar. The American currency continued to slide weakened after yesterday’s FOMC statement and Yellen’s press conference.
USD/CHF bottomed today at 0.9149, the lowest level since May 18. During the last hours the pair has been moving in a range between 0.9190 and 0.9150, consolidating after a 240-pip slide from Tuesday’s highs.
The decline brought the price closer to 0.9070/80, area that offered support twice during May. If the pair drops below it would be trading at the lowest since January.
CHF unaffected by SNB
Earlier the Swiss National bank left its policy rate unchanged, in line with expectations. The interest rate on sight deposit accounts remained at a record low of -0.75% while the target range for the three-month Libor was also unchanged, at –1.25% and −0.25%. Chairman Thomas Jordan sounded optimistic that the Swiss franc will weaken over time. “As conditions continue to normalize on international financial markets, investments in other currencies should become more attractive; this, in turn, is likely to help ease the over-valuation,” said Jordan in the press conference following SNB decision.
The Franc was unaffected by the SNB and it was practically unchanged against the other European currencies that were also rising versus the US dollar.
USD/CHF bottomed today at 0.9149, the lowest level since May 18. During the last hours the pair has been moving in a range between 0.9190 and 0.9150, consolidating after a 240-pip slide from Tuesday’s highs.
The decline brought the price closer to 0.9070/80, area that offered support twice during May. If the pair drops below it would be trading at the lowest since January.
CHF unaffected by SNB
Earlier the Swiss National bank left its policy rate unchanged, in line with expectations. The interest rate on sight deposit accounts remained at a record low of -0.75% while the target range for the three-month Libor was also unchanged, at –1.25% and −0.25%. Chairman Thomas Jordan sounded optimistic that the Swiss franc will weaken over time. “As conditions continue to normalize on international financial markets, investments in other currencies should become more attractive; this, in turn, is likely to help ease the over-valuation,” said Jordan in the press conference following SNB decision.
The Franc was unaffected by the SNB and it was practically unchanged against the other European currencies that were also rising versus the US dollar.