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  • USD/CHF turned north during the American trading hours.
  • US Treasury named Switzerland a “currency manipulator” in its latest report.
  • US Dollar Index stays in the negative territory near 90.30.

The USD/CHF dropped to its lowest level since early 2015 at 0.8826 on Wednesday but staged a decisive rebound in the last hour after the US Treasury named Switzerland a “currency manipulator” in its latest report. As of writing, the pair was posting small daily gains at 0.8861.

SNB doesn’t budge

In response to the US Treasury, the Swiss National Bank (SNB) released a statement saying that foreign exchange market interventions are necessary to ensure appropriate monetary conditions and price stability in Switzerland. “The SNB’s monetary policy approach remains unchanged by the US Treasury report,” the statement further read.

On the other hand, a modest rebound witnessed in the US Dollar Index (DXY) seems to be helping USD/CHF push higher. The data published by the US Census Bureau showed on Wednesday that Retail Sales in November declined by 1.1%, compared to analysts’ estimate for a fall of 0.3%. At the moment, the DXY, which slumped to its lowest level since April 2018 at 90.12, is currently down 0.2% on the day at 90.30.

Later in the day, the FOMC will publish its Monetary Policy Statement and Economic Projections alongside the Interest Rate Decision.

Technical levels to watch for