- The Swiss Franc is giving up ground to the US Dollar as markets scoop up the USD on climbing Treasury yields.
- Thursday’s SNB showing is expected to leave rates unchanged, but rhetoric changes in the policy statement could heave the CHF.
The USD is on the move against the CHF ahead of Thursday’s European market window, with the pair pushing towards the major 1.0000 handle and etching in a new high for today at 0.9984.
US Treasury yields lifted on Wednesday, bolstering the Greenback across the board and the US Dollar is bounding higher against the major currency bloc for Thursday, as market sentiment struggles to stage a full-on recovery.
Thursday brings the Swiss National Bank (SNB) early on at 07:30 GMT, and the Swiss central bank is dropping their latest rate decision, which is expected to remain steady at -0.75%, while the SNB will also be publishing their latest Monetary Policy Assessment, though little change is expected, and 40 out of 40 economists polled by Reuters expect the SNB to keep rates where they are for the time being. As noted in the poll, the SNB would stick with a target range of minus 1.25 percent to minus 0.25 percent for the three months London Interbank Offered Rate, as it has for the last three-and-a-half years.
USD/CHF levels to watch
As noted by FXStreet’s own Haresh Menghani, “any subsequent retracement is likely to find support near the 0.9920 level and is followed by the 0.9900 handle, below which the pair could correct back to 0.9865-60 support area. On the flip side, the 0.9970-80 region might continue to act as an immediate hurdle, which if cleared might assist the pair to aim back towards reclaiming the parity mark.”
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