USDCHF hits target and remains bid after SNB


USDCHF, Daily                 

The SNB keeps policy on hold, as expected. The central bank confirmed its expansionary policy, with interest on sight deposits unchanged at -0.75% and the mid point Libor target also at -0.75%. At the same time the central bank confirmed its commitment to “remain active in the foreign exchange market as necessary, while taking the overall currency situation into consideration”. The CHF remains “significantly overvalued”, according to the central bank. The updated set of forecasts, cut the inflation projections for 2018 and 2018 by 0.1 percentage points to just 0.3% and 1.0% respectively. And while the SNB acknowledged that the global economy strengthened further and the new baseline scenario “anticipates that economic developments will remain favourable”. At the same time though the central bank highlights “considerable downside risks”, due to political uncertainty and structural problems. The growth forecast for Switzerland was left unchanged at “roughly” 1.5%. No major surprises there and the SNB is widely seen on hold for the reminder of the year and wide into 2018. My long position on the USDCHF from Monday (June 12) hit target 1 for a gain of 50 pips and remains well bid this morning. Target 2 is 0.9800.

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Loading Facebook Comments ...

Leave a Reply