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USD/CHF: Swiss franc spikes to 0.9680 as SNB keeps rates steady

FXStreet (Mumbai) - The Swiss franc erased losses and jolted higher versus the US dollar in the European morning, knocking-off USD/CHF to fresh session lows below 0.97 handle, after the Swiss National Bank (SNB) kept the key rates unchanged at -0.75%.

USD/CHF drops from peaks

Currently, the USD/CHF pair trades -0.32% lower at fresh session lows of 0.9680, failing to resist 0.97 handle post the SNB decision. The Swiss franc resumed its upward trajectory for the second straight session on Thursday, after the country’s central banks kept its benchmark rate on hold, although revised its inflation expectations downward as a result of the drop in oil prices.

The interest rate to be charged on sight deposit account balances remained at a record low of -0.75%. The target range for the three-month Libor was also unchanged, currently between –1.25% and −0.25%.

Looking ahead, the pair is likely to be heavily impacted by the Fed rate decision, which is expected to cause higher volatility across the FX board.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9766 (Sept 7 High) levels and above which it could extend gains to 0.9800 (Sept 10 High) levels. To the downside, immediate support might be located at 0.9640 (Aug 19 Low) levels and below that at 0.9593 (July 29 Low) levels.

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