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15 Jan 2015
USD/CHF remains below 0.8800
FXStreet (Edinburgh) - The Swiss franc remains in centre stage on Thursday, now taking USD/CHF to the 0.8780/85 band.
USD/CHF focus on T.Jordan presser
Spot is keeping the composure so far as SNB’s T.Jordan is giving a press conference after today’s unexpected decision by the central bank. Jordan argued the bank will stop its FX purchases formerly tied with the 1.20 peg and highlighted that the minimum exchange rate was an exceptional measure to protect the Alpine economy. He stressed the bank’s commitment to price stability after stating that the current inflation outlook for the country is low. Jordan also argued that the decision to remove the cap had to be a surprise and it was taken independently of other central banks. Furthermore, he said the markets overreacted, considering the franc was already overvalued.
USD/CHF levels to watch
At the moment the pair is losing 14.02% at 0.8757 with the next support at 0.8750 (hourly low Jan.15) ahead of 0.7360 (low 2015 Jan.15) and finally 0.7068 (historical low). On the upside, a breakout of 0.9175 (low Sep.2014) would target 0.9361 (low Oct.2014) en route to 0.9530 (low Nov.2014).
USD/CHF focus on T.Jordan presser
Spot is keeping the composure so far as SNB’s T.Jordan is giving a press conference after today’s unexpected decision by the central bank. Jordan argued the bank will stop its FX purchases formerly tied with the 1.20 peg and highlighted that the minimum exchange rate was an exceptional measure to protect the Alpine economy. He stressed the bank’s commitment to price stability after stating that the current inflation outlook for the country is low. Jordan also argued that the decision to remove the cap had to be a surprise and it was taken independently of other central banks. Furthermore, he said the markets overreacted, considering the franc was already overvalued.
USD/CHF levels to watch
At the moment the pair is losing 14.02% at 0.8757 with the next support at 0.8750 (hourly low Jan.15) ahead of 0.7360 (low 2015 Jan.15) and finally 0.7068 (historical low). On the upside, a breakout of 0.9175 (low Sep.2014) would target 0.9361 (low Oct.2014) en route to 0.9530 (low Nov.2014).