USD/CHF Fails to Violate Triple Top – SNB Leaves Interest Rate at -0.75%

Recalling FX Leaders’ June 21 – Economic Event’s Report, the Swiss National Bank was expected to leave the interest rate on hold at -0.75% and that’s exactly what it did. But there are a few takeaways from SNB Statement.

Swiss National Bank – Key Takeaways

London Interbank Offer Rate (Libor Rate)

• Prior -0.75%
• 3-month Libor lower target range -1.25%
• 3- month Libor upper target range -0.25%

The Swiss National Bank is ready to intervene in the forex market if needed.

• GDP growth forecast for 2018 is unchanged at 2%
• 2018 – Inflation is expected to remain at 0.9% vs. previous forecast 0.6%.
• 2019 – Inflation is seen at 0.9% vs. previous forecast 0.9%.
• 2020 – Inflation is seen at 1.6% vs. previous forecast 1.9%.

As expected, there was nothing new from the SNB, mainly a repetition of the previous message seen in March and a slight upgrade of this year’s inflation forecast. Thus, we haven’t seen much movement in the market.

USD/CHF – Ascending Triangle Pattern

The indirect currency pair has formed an ascending triangle pattern on the 4- Hour chart. Historically, the ascending triangle breaks out on the upper side but after the upgraded inflation forecast from Jordan, the investors seem to increase their bets on the CHF.

USD/CHF – 2 Hour Chart

USD/CHF has an immediate resistance at $0.9985 and a support at $0.9950. The violation of support level can lead the pair towards $0.9935. Now let’s wait for the Bank of England to capture more fluctuations in the market. Good luck!