FXstreet.com (Córdoba) - The Swiss franc weakened on Tuesday, on expectations that other banks will join Credit Suisse Group AG and charge interest for holding franc deposits (negative rates). On Monday Credit Suisse said it would set negative interest rates on cash accounts starting Dec 10. The policy applies only to interbank deposits, not to accounts held by individuals.
USD/CHF rose over 50 pips from lows and hit a high of 0.9292 before quickly pulling back to the 0.9260 zone. The cross finally settled around 0.9270, where it is 0.2% above its opening price.
"Swiss on the bigger picture continues to trade in the 0.9500-200 range and the bias remains bearish inside the range for a fall towards 0.9200. The chances of 0.9200 breaking also remains and a further down side towards 0.9170-00 in the coming sessions", says the Kshitij Consultancy Services Team. "Any rise from current levels is expected to face resistance near 0.9300-30 levels and will be short lived".
USD/CHF rose over 50 pips from lows and hit a high of 0.9292 before quickly pulling back to the 0.9260 zone. The cross finally settled around 0.9270, where it is 0.2% above its opening price.
"Swiss on the bigger picture continues to trade in the 0.9500-200 range and the bias remains bearish inside the range for a fall towards 0.9200. The chances of 0.9200 breaking also remains and a further down side towards 0.9170-00 in the coming sessions", says the Kshitij Consultancy Services Team. "Any rise from current levels is expected to face resistance near 0.9300-30 levels and will be short lived".
