OctaFX | OctaFX Forex Broker
Open trading account

USD/CHF consolidates above 0.9300 ahead of SNB

FXStreet (Córdoba) - Greenback is about to post the fourth consecutive weekly gains versus the Swiss franc but USD/CHF finished far from the highs. On Wednesday reached the strongest level in a year at 0.9394 but then pulled back.

During Friday moved all day with a bearish bias but fell modestly. Price found support above weekly lows that lie on top of 0.9310 and bounced to end hovering near 0.9350.

Will SNB surprise on Thursday?

Next Thursday the Swiss National Bank (SNB) will announce its decision on monetary policy. Some speculation about negative rates weighted on the Swiss franc that fell not only against the US dollar.

According to RBS FX Strategists comments on negative rates are nothing new. “That negative rates are conceivable “if needed” is the SNB’s standard comment. It is not currently clear that they are. The SNB have not had to defend the floor in 18 months. Negative rates would likely be very effective at countering CHF appreciation. But there remain risks in terms of implications for the housing market and financial system”.

Analysts from RBS noted that negative rates could emerge after and intervention by the SNB happens to defend the EUR/CHF floor. “We expect no change from the SNB next week and a continued grind lower in EUR/CHF back towards the floor”. The EUR/CHF peaked on Wednesday at 1.2117 and finished the week trading slightly below 1.2100; having the best weekly performance since April.

USD/JPY has best week of 2014

Near the end of trading in Wall Street, USD/JPY continues to hold steady, above 107.00 near 8-year highs.
Read more Previous

AUD/SUD worst week in 13 months

The aussie was among the worst performers in the currency market during the last five days and against the US dollar had the biggest weekly loss since July 2013.
Read more Next
Start livechat