USD/CHF nears 0.97 hurdle on SNB Jordan’s remark

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  • SNB Chief Jordan’s comments continue to weigh over CHF in Asia. 
  • USD/CHF is probing the psychological hurdle of 0.97, which has been capping upside since Jan. 17.

The USD/CHF pair is trading in the positive territory near the psychological resistance of 0.97 on Friday. 

SNB could intervene if necessary

Swiss National Bank’s (SNB) Chairman Thomas Jordan was out on the wires Thursday, assuring markets that US’ decision to add Switzerland to its list currency watchlist will not deter the SNB from cutting rates or intervening in the FX markets to halt upside in the Swiss franc. 

Jordan also said that negative rates are a necessity, and reiterated that the SNB conducts its independent monetary policy that does not tag along with the ECB, according to Reuters. 

As a result, markets offered CHF on Thursday and the weak tone has persisted so far in Asia, despite coronavirus scare. 

Bulls need close above 0.97

The area around the psychological level of 0.97 has been capping upside since Jan. 17. The pair did rise to 0.9729 on Jan. 22 but failed to print a daily close above 0.97. 

The bulls, therefore, need a daily close above 0.97. That would open the doors for resistance at 0.9762 (Jan. 10 high). 

Technical levels

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