Swiss franc renews its appreciation

20.09.2019 / 06:00

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The USD/CHF pair continued its sharp decline after SNB, passing the psychological level of 0.9900

The pair failed to take advantage of the positive move around its quarterly peaks, amid falling interest rates, and witnessed a dramatic turnaround during the day on Thursday after the Swiss National Bank (SNB) announced its decision on monetary policy. .

SNB kept its deposit interest rate at -0.75% and also lowered its inflation / GDP projections for 2019, but refrained from following the ECB and the Fed by cutting interest rates, which seems to have been the only factor causing some aggressive purchase of francs on Thursday.

Adding to this, the prevailing cautious mood, amid fears of further escalation of geopolitical tensions in the Middle East, gave further impetus to the relative status of the Swiss franc's safe haven and contributed to the pair's sharp fall of more than 80 pips.

Our expectations: The price may drop to the first internal support of the channel from where if it does not break it can return and test the daily resistance of the downtrend channel, and then resume its downward movement.

Trader Martin Nikolov

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Swiss franc renews its appreciation

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