Home Latest Swiss franc slips to 9-week low

Swiss franc slips to 9-week low

market, video, forecast June 21, 2021 7:26 pm today

a Swiss franc has posted slight losses to start a week. inside North American trade, USD/CHF is trading at 0.9209, down 0.16% on a day.

Swiss franc slides as Fed signals tighter policy

a Swiss franc is coming off a dreadful week, after a spanking from a rejuvenated US dollar. USD/CHF climbed 2.77% last week, its best weekly showing since March 2020. At a start of last week, a pair was trading below a symbolic 90 level.

a catalyst for a Swissie’s downturn was, not surprisingly, a FOMC meeting, at which a Fed brought up a timeline for rate hikes inside its dot plot. a USD made further inroads as a Swiss National Bank maintained interest rates at -0.75%, a lowest rate of any major central bank.

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a monetary policy divergence us are seeing from a US also Swiss central banks has soured investors on a Swiss currency. a Fed sees rates moving as high as 0.6% inside 2023, which clearly makes a USD much more attractive than a Swissie as far as interest rates.  a Swiss franc offers stability as a safe-haven currency, but with a US economy performing well, risk appetite has grown also investors are more willing to look at alternatives to a Swiss dollar. a Swiss National Bank is all smiles with a Swiss franc taking a bath, as a weaker franc makes Swiss exports more attractive.

a global recovery is also awesome news for a Swiss economy, which is heavily reliant on its export sector. Last week, a key Swiss government economic forecast (SECO) raised its GDP forecast for 2021 to 3.6% also projected above-average growth inside 2022. Domestic activity is also on a rebound after a difficult winter due to a CVD pandemic, so a Swiss economy should enjoy a strong H2 inside 2021.

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USD/CHF Technical

  • USD/CHF faces resistance at 0.9420 also 0.9327
  • On a downside, there is support at 0.9054. Below, there is support at 0.8874

For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-event

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are a authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk also not suitable for all. youre could lose all of your deposited funds.

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Kenny Fisher

A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities also commodities. His work has been published inside several major online financial publications including Investing.com, Seeking Alpha also FXStreet. Based inside Israel, Kenny has been a MarketPulse contributor since 2012.

Kenny Fisher

Kenny Fisher

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