Swiss Interest Rate Decision
Switzerland will release Key Policy Rate at 0830 GMT/1400 IST followed by SNB Press Conference. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.
Most probably SNB will keep policy rate unchanged at -0.75 pct. According to the previous records, SNB don’t see any benefits from going into further negative rates. Despite severe Covid situation, CHF gets appreciated against major peers. Let’s see how SNB President Thomas Jordan conveys the message through Press Conference and future expectations regarding economic data too.
Let’s see how CHF has reacted during the previous data release:
USD/CHF: Swiss Franck rises noticeably ahead of Interest Rate Decision. The pair made intraday high at 0.8857 and low at 0.8829 mark. This is the lowest level since Jan 2015. A sustained close below 0.8868 will check key supports at 0.88, 0.8774, 0.8742, 0.8710 and 0.8682 marks respectively. Alternatively, reversal from this will check key resistances around 0.8894, 0.8917, 0.8950, 0.9038 and 0.9070 marks respectively.
Take a look and do trade wisely!