USD/CHF: SNB to have little impact on the Swiss franc

The Swiss franc remains better bid against its American counterpart, as we head closer towards the Swiss National Bank’s (SNB) quarterly monetary policy assessment, while traders look past yesterday’s hawkish Fed rate hike amid latest reports of Trump probe.

USD/CHF: No surprises likely from the SNB

The USD/CHF pair remains supported at 0.9700 levels so far this session, as the Swiss franc benefits from moderate risk-aversion and stalled USD buying across the board, with markets digesting latest headlines on the Trump investigation over the US President’s alleged links with Russia.

On the other side, expectations of a relatively uneventful SNB policy meeting, keeps the recovery in the Swiss franc limited, as SNB’s Chairman is widely expected to keep the rate unchanged and deliver the rhetoric – ‘Swiss franc remains significantly overvalued’.

Also of note for the major remains the US dataflow, with the industrial production, jobless claims and Philly Fed manufacturing index to provide fresh hints on  the health of the US economy.

USD/CHF Technical levels                

Karen Jones, Analyst at Commerzbank explains, “USD/CHF near term is correcting higher. The market has eroded the 20 day ma at .9703, and upside potential remains near term for gains to .9800/55. The market last week found some nearby support at .9614, the base of a 2 year channel and bounced higher from here. The March low and 30th May high lie at .9808/14 and we suspect that the market may struggle here.”