USD/CHF advances to fresh monthly highs above 0.9800

• SNB says it stepped up FX interventions amid coronavirus outbreak.
• US Dollar Index extend rally beyond 102 on Thursday.
• Weekly Jobless Claims from US is coming up next.

The USD/CHF pair gained nearly 100 pips on Wednesday and preserved its bullish momentum on Wednesday boosted by ongoing USD-buying. As of writing, the pair was trading at its highest level in a month at 0.9805, adding 1.3% on a daily basis.

SNB leaves policy rate unchanged

Earlier in the day, the Swiss National Bank (SNB) announced that it kept its policy rate steady at -0.75% as expected. Commenting on the policy outlook, SNB Chairman Jordan said that the fiscal policy was central to combat the crisis but acknowledged that the SNB stepped up FX interventions since the coronavirus outbreak began to weigh on the CHF. 

On the other hand, the strong demand for the greenback on funding-stress concerns provided an additional boost to the pair.

The US Dollar Index, which added more than 3% during the first half of the week, continues to rise sharply on Thursday and was last seen at its highest level since January 2017 at 102.33, adding 1.4% on the day.

In the early trading hours of the American session, participants will be paying close attention to the weekly US Jobless Claims and Philly Fed Manufacturing Index data for fresh clues regarding the impact of the coronavirus on the economy.

Technical levels to watch for