Swiss Franc’s Safe-Haven Perception Presents A Challenge To Monetary Pol
GCI Financial | Mar 20, 2014 03:39AM ET
For the 24 hours to 23:00 GMT, the USD rose 0.98% against the CHF and closed at 0.8819, following the Fed’s decision to trim its stimulus measure by yet another $10 billion. Traders also cheered the Fed Chief, Janet Yellen’s comments that projected an interest-rate-hike by the mid of next year.
The Swiss Franc lost ground, after the ZEW survey reported that its index on economic expectations in Switzerland tumbled to a 6-month low reading of 19.0 in March, more than analysts’ call for a fall to 25.0, from previous month’s reading of 28.7.
Late Wednesday, the Swiss National Bank (SNB) President, Thomas Jordan, a day before the SNB’s interest rate decision, stated the market’s perception of Swiss Franc as a safe-haven currency poses a big challenge for monetary policy in the nation. Furthermore, he indicated that, despite the recent economic progress, the nation still remains far away from a full recovery.
In the Asian session, at GMT0400, the pair is trading at 0.8812, with the USD trading 0.08% lower from yesterday’s close.
The pair is expected to find support at 0.8752, and a fall through could take it to the next support level of 0.8692. The pair is expected to find its first resistance at 0.8851, and a rise through could take it to the next resistance level of 0.8890.
Traders keenly await the SNB’s interest rate decision and Switzerland’s trade balance data, slated for release later today.
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