- USD/CHF advances beyond 0.9700 following a quiet Asian session.
- SNB’s Jordan says SNB has room to cut interest rates further.
- US Dollar Index recovers to 99 ahead of Fed’s Beige Book.
The USD/CHF fell to a daily low of 0.9650 in the early trading hours of the European session but turned north on Swiss National Bank Chairman Thomas Jordan’s remarks. As of writing, the pair was up 0.51% on the day at 0.9703.
CHF weakens after dovish SNB commentary
Jordan on Wednesday said that the SNB has room to lower its policy rate further if needed. “Using negative interest rate and interventions are particularly important at the moment as franc in demand as safe haven,” Jordan explained and reiterated that they are will to intervene in currency markets more strongly.
Meanwhile, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, staged a rebound after dropping to its lowest level in 23 days at 98.72 and helped the pair push higher.
Although there were no apparent catalysts that might have ramped up the demand for the USD, the renewed selling pressure surrounding the GBP seems to be helping the buck gather strength. As of writing, the DXY is virtually unchanged on a daily basis at 99.
Later in the day, the Federal Reserve’s Beige Book will be watched closely by the market participants.