- USD/CHF bears remain in control for the fourth straight session on Thursday.
- The USD consolidated its post-FOMC losses and failed to provide any respite.
- SNB leaves interest rates unchanged at -0.75% and did little to influence.
The USD/CHF pair remained under some selling pressure for the fourth consecutive session on Thursday and dropped to fresh three-month lows post-SNB.
The pair extended this week’s sharp retracement slide from levels just above the 0.9900 handle and continued losing ground through the early European session on Thursday.
Despite a slight improvement in the global risk sentiment, which tends to dent the Swiss franc’s traditional safe-haven status, the pair struggled to register any meaningful recovery.
Bulls failed to gain any respite from a subdued US dollar demand, which consolidated the previous session’s heavy losses led by a dovish assessment of the latest FOMC policy statement.
It is worth recalling that the Fed on Wednesday indicated that rates would remain on hold but reiterated its accommodative policy stance, which exerted some heave pressure on the US dollar.
The pair moved little, rather had a muted reaction to Thursday’s SNB monetary policy decision, wherein the Swiss central bank maintained status-quo and left the policy rate unchanged at -0.75%.
It will now be interesting to see if the pair is able to attract any buying interest or continues with its bearish trajectory traders now eye US Producer Price Index (PPI) for a fresh impetus.
Technical levels to watch
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