Swiss franc strengthens modestly after SNB left its policy rate unchanged
Markets are getting anxious for more rate cuts by central banks around the world and today is telling of that sentiment. The BOJ and SNB were expected to keep rates unchanged and they duly did, yet it didn't stop traders from bidding up both respective currencies after.
USD/CHF has fallen by just over 30 pips now to session lows close to the 100-hour MA (red line) with the 200-hour MA (blue line) also lurking nearby at 0.9920. A break below those levels will see sellers regain near-term control in the pair.
So, what has the SNB told us?
Essentially, they told us nothing and the statement reiterated a similar message while they downgraded growth and inflation forecasts yet again.
If anything else, it suggests that the SNB still doesn't see the current strength in the franc as being too overwhelming to force their hand just yet. And that's reason enough for markets to push back against the decision.
Much like the yen reaction to the BOJ earlier, it's a "bend until it breaks scenario".
