SNB leaves rates unchanged tweaks language on CHF. The Swiss central bank left overall policy setting unchanged, with the Libor target range confirmed at. The statement said negative interest rates and the SNB’s willingness to “intervene in FX market as necessary” “remain essential in order to reduce the attractiveness of the Swiss franc investment and thus ease pressure on the currency”. At the same time though, the SNB noted that the Swiss franc has weakened against the euro and appreciated against the dollar, saying that “this development is helping to reduce, to some extent, the significant overvaluation of the currency”. Nevertheless, the CHF “remains highly valued, and the situation on the foreign exchange market is still fragile”. So an acknowledgement of recent developments on forex markets, but a confirmation of the overall policy stance despite this.
Despite the perky behaviour during morning hours, the USDCHF regains the loss down to 0.9617 in the SNB announcement, by an hourly positive close above the 20-period MA, at 0.9652. The resistance level for the day is at week’s highest area , at 0.9665- 0.9670. A possible break of the recent up fractal at 0.9660, indicates further upwards momentum up to 0.9700- 0.9750 area. However today’s inflation data out of US will be significant for the particular pair.
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