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Forex - USD/CHF edges higher after SNB holds

Published 06/15/2017, 04:11 AM
Dollar gains ground against Swissie on SNB remarks
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar edged higher against the Swiss franc on Thursday, after the Swiss National Bank left interest rates on hold and said the local currency was still "significantly overvalued."

USD/CHF hit 0.9733 during European morning trade, the session high; the pair subsequently consolidated at 0.9738, adding 0.28%.

The pair was likely to find support at 0.9639, Wednesday’s low and resistance at 0.9762, the high of May 31.

The SNB left the benchmark interest rate unchanged at -0.75%, in line with expectations and added that it will "remain active in the foreign exchange market, as necessary," while taking the overall currency situation into consideration.

The decision came a day after the Federal Reserve raised interest rates from 1.00% to 1.25%, as expected. However, disappointing U.S. inflation data raised questions about whether the central bank will be able to hike rates again later this year.

The greenback also remained vulnerable amid ongoing U.S. political turmoil as the Washington Post reported on Wednesday that U.S. President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice.

The Swissie was higher against the euro, with EUR/CHF slipping 0.15% to 1.0877.

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