Swing Trades: EUR/CHF, GBP/USD, EUR/USD

EUR/CHF: SNB Interest Rate Decision

The EUR/CHF currency rose by 26 base points or 0.23% to continue the trading session nearing the 1.1480 area, after the Swiss National Bank announced its interest rate decision. The weakening against the Euro was a positive sign for the Central Bank, indicating that the Franc slightly diminished its over-valuation.

The Swiss National Bank reported that its key interest rate remained unchanged at -0.75%, and, in the meantime, softened its stance concerning the Franc’s strong performance. However, the SNB is likely to continue focusing on the EU, as it will be seeking the European Central Bank to take action of removing some of the monetary stimulus before considering any changes in its own policy.

GBP/USD: BoE Official Bank Rate

The Sterling managed to offset all Wednesday’s losses after the Bank of England announced its decision to leave interest rates unchanged. Following the report, the GBP/USD jumped 118 base points or 0.89% to reach the yearly high and continue consolidation in the 1.3394 area given additional boost from the BoE governor’s comments.

Apart from keeping the key interest rate at 0.25%, the Bank of England warned about higher possibility of changing rates policy in coming months for the first time in ten years. The main concerns remained surrounding weaker wage growth, slower overall expansion and uncertainty about Brexit impact on the UK economy. Though, the Central Bank expected the yearly growth to pick up more than estimated.

EUR/USD: US Consumer Price Index

The EUR/USD dropped initially after the US consumer inflation reports showed better-than-expected figures. The Euro depreciated against the US Dollar by 0.39% or 46 base points to the 1.1849 mark, though the European single currency managed to return to pre-data levels.

According to the Labour Department's report, the consumer inflation in the US showed a monthly rise of 0.4% in the month of August, with an annual gain of 1.7% in the same period. An increase in the CPI figures boosted expectations for the Fed rate hike in December, which supported bullish sentiment in EUR/USD additionally fuelled by the NK latest missile launch. The next direction of the pair will be determined by Friday’s US retail sales data.