USD/CHF erases losses and climbs to test daily highs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - USD/CHF rebounded during last hours amid a rally of the US dollar across the board and erased losses. The pair approached yesterday’s highs while market participants get ready for the FOMC statement.

    USD/CHF back above 1.0150

    During the European session, the pair bottomed at 1.0130 and then rebounded. Recently it reached a fresh daily high at 1.0180, slightly above previous highs. It was trading at 1.0165/70, around the same level it had at the beginning of the day.

    Most currencies are unchanged against the US dollar today, on a session that is likely to be dominated by the outcome of the Federal Reserve decision. Investors will look into the statement for clues about what could happen at the March meeting as they expect no change in rates today.

    The Swiss franc is recovering ground against the pound but versus the euro reached a new 1-year low. During the last few days the Swissy has been among the worst performers in the currency market.

    “There is some confusion in the market as to what is fueling the franc weakness. The is some speculation that the SNB (Swiss National Bank) could be pushing the franc lower to prepare for additional ECB (European Central Bank) easing in March. It is difficult to confirm the talk, but next week’s sight deposits will provide some clues”, said Marc Chandler, Head of Global Markets Strategy at Brown Brothers Harriman.
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