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11 Dec 2014
USD/CHF near day’s high after the SNB decision
FXStreet (Mumbai) - The Swiss Franc weakened against the US dollar after the Swiss National Bank (SNB) kept rates at ultra-low levels and revised its inflation forecast for 2015 lower in its quarterly rate decision today.
The USD/CHF now trades 0.10% higher at 0.9675. The Franc weakened as the SNB warned that a further appreciation of Franc would push inflation well into negative territory. "With interest rates at zero, the minimum exchange rate is the key instrument to avoid an undesirable tightening of monetary conditions," Jordan told a media conference in Berne.
However, the losses in Franc may be capped due to strength in the CHF/EUR cross as the central bank refrained from moving into the negative territory with the interest rates.
USD/CHF Technical Levels
The pair has an immediate resistance on the hourly chart at 0.9679, above which gains could be extended to 0.9694 levels. Meanwhile, a break below support at 0.9646 shall open doors for 0.96 levels.
The USD/CHF now trades 0.10% higher at 0.9675. The Franc weakened as the SNB warned that a further appreciation of Franc would push inflation well into negative territory. "With interest rates at zero, the minimum exchange rate is the key instrument to avoid an undesirable tightening of monetary conditions," Jordan told a media conference in Berne.
However, the losses in Franc may be capped due to strength in the CHF/EUR cross as the central bank refrained from moving into the negative territory with the interest rates.
USD/CHF Technical Levels
The pair has an immediate resistance on the hourly chart at 0.9679, above which gains could be extended to 0.9694 levels. Meanwhile, a break below support at 0.9646 shall open doors for 0.96 levels.