The Swiss National Bank left rates unchanged again at -0.75%. Thomas Jordans (Chairman of the SNB) comments were:

Risk of renewed upward pressure on the Swiss franc is high, the situation on forex market fragile.

It costs more to hedge against Swiss franc appreciation than against its depreciation on the options market.

Move away from Libor is a very challenging task for financial markets.

SARON is establishing itself as the leading reference rate for financial products, market participants have to prepare themselves for the post-Libor era.

Creation of liquid, SARON-based yield curve is very important for the Swiss financial system and for transmission of SNB monetary policy.

SARON stands for Swiss Average Rate Overnight with Libor meaning The London Bank Offering Rate, the old benchmark.  

With regards to Jordan’s first comment ‘Risk of renewed upward pressure on the Swiss franc is high, the situation on forex market fragile’.  

Can they (the SNB) stem the rise of the CHF and the fall of USDCHF as traders look to safe-haven currencies? Let’s take a look at the technical picture:

USDCHF Monthly: Continues to use 1.000 as a pivot point or mean average. Since 2015, USDCHF has failed to move a substantial distance away from this Big Figure. However, the whole choppy move from the 2011 lows could be seen as a large Ending Wedge pattern that has an eventual bias to break to the downside.



USDCHF Weekly: Broken the wedge formation to the downside. This pattern has a measured move target of 0.9190. Corrective upward pressure this week has seen a retest of the breakout level at 0.9962.



USDCHF Daily: Completed a 5-wave count to the downside (Elliott Wave). The move higher is mixed and volatile common in corrective formations. Looks like the early stages of a bearish Head and Shoulders pattern with this current corrective rally being the right shoulder. This corrective formation could take a while to playout. Resistance today is seen at 0.9971-76. Heading into next week and 1.0030-80 is solid upside resistance. We are looking at selling rallies to take USDCHF lower.


Trading carries a high level of risk to your capital. Losses can exceed deposits. Please read the full risk warning here.Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Loses can exceed deposits. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD challenges weekly highs is a sentiment-driven advance

The financial markets continue to focus on sentiment instead than on data, with equities leading the way. Upbeat earnings reports overshadow coronavirus-related concerns. EUR/USD nearing June monthly high at 1.1422.


GBP/USD trims intraday losses, trades flat around 1.2550

The US session is seeing the dollar gave up early gains, even against the weakened Pound. GBP/USD hovers around 1.2550, despite disappointing UK GDP.


Gold advances to fresh daily highs near $1,810

The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. 

Gold News

Bitcoin low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

Read more

WTI Oil Outlook: Concerns of slowdown in global demand recovery pressure oil price

WTI oil remains at the back foot on Tuesday and establishes below $40 level, as sentiment weakened on news of new restrictions in California due to increased number of infections.

Oil News

Forex Majors