USD/CHF refreshes session tops post-SNB

   •  SNB leaves interest rates unchanged.
   •  Raises inflation forecast for 2017/2017.
   •  Swiss Franc fails to benefit from hawkish outlook.

After an initial dip to 1-1/2 week lows, the USD/CHF pair gained some traction and has now jumped to fresh session tops post-the SNB announcement.

Currently trading around 0.9865 level, the pair caught some fresh bids after the SNB, on expected lines, kept key rate unchanged at -0.75%, with 3-month Libor target range unchanged between -1.25% and -0.25%. 

Meanwhile, the accompanying monetary policy assessment reiterated the Swiss Franc's overvaluation and reaffirmed the central bank's readiness to intervene in the FX markets, as needed. 

Meanwhile, an upward revision of the central bank's inflation forecast for 2017/2018 and expected 2.0% GDP growth for 2018 did little to lend any support to the domestic currency and stall the pair's tepid recovery move. 

Investors now look forward to the SNB press conference for some fresh impetus ahead of the key US macro data - monthly retail sales and initial jobless claims data, later during the early NA session.

Technical levels to watch

A follow-through buying interest beyond 0.9870 level is likely to accelerate the up-move back towards the 0.9900 handle before the pair eventually darts towards 0.9940 supply zone. 

On the flip side, 0.9840 level now becomes an immediate support to defend, which if broken is likely to accelerate the fall towards the very important 200-day SMA support near the 0.9800-0.9790 region.