• A modest USD rebound helped find some support near the 0.9900 handle.
• Risk-off mood underpinned CHF and kept a lid on the attempted recovery.
• SNB policy decision/upbeat US economic data do little to impress bulls.
The USD/CHF pair struggled to register any meaningful recovery and remained within striking distance of over two-month lows, set in the previous session.
The Fed, in its latest monetary policy update on Wednesday, indicated there will be no more rate hikes in 2019 and also downgraded its economic outlook. The US central bank further said the unwinding of its balance sheet would end in September and triggered a broad-based US Dollar sell-off.
The pair extended its recent retracement slide from near four-month tops and tumbled to sub-0.9900 level for the first time since January 17, albeit showed some resilience at lower levels. A modest USD rebound did provide a minor intraday lift, albeit lacked any strong bullish conviction.
The prevalent risk-off mood, as depicted by heavy losses across European equity markets and reinforced by sliding US Treasury bond yields, was seen underpinning the Swiss Franc’s relative safe-haven status and turned out to be one of the key factors that kept a lid on any meaningful recovery for the major.
Meanwhile, today’s SNB decision passed rather unnoticed, as did the US economic data – stronger Philly Fed manufacturing index and initial weekly jobless claims data, through help limit further downside/deeper losses, at least for the time being.
Technical levels to watch