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20 Jun 2013
USD/CHF capped in London
FXstreet.com (London) - The SNB met today and the markets had been interested to see if the SNB ha something new to offer after the aggressive downgrade to inflation expectations in their last meeting.
The SNB have left rates unchanged as widely expected. Earlier we saw their Trade balance for May that came in bearish at 2224m vrs 2410m expected. Overnight we have saw USD/CHF react to the FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer.
USD/CHF capped 0.9317
Post the release of the FOMC overnight, we saw the pair move from 0.9182 to 0.9323. This mornings trade data didn’t help the pair higher, and indeed the pair have tailed off in the London morning falling to 0.9282 from 0.9317 the high, with a muted price action on the release of the SNB holding rates at 0%. Key support is 0.9035 targeting 0.9340 and 0.9460 (April highs).
The SNB have left rates unchanged as widely expected. Earlier we saw their Trade balance for May that came in bearish at 2224m vrs 2410m expected. Overnight we have saw USD/CHF react to the FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer.
USD/CHF capped 0.9317
Post the release of the FOMC overnight, we saw the pair move from 0.9182 to 0.9323. This mornings trade data didn’t help the pair higher, and indeed the pair have tailed off in the London morning falling to 0.9282 from 0.9317 the high, with a muted price action on the release of the SNB holding rates at 0%. Key support is 0.9035 targeting 0.9340 and 0.9460 (April highs).