• Swiss franc among top performers after SNB surprise rate hike.
  • USD/CHF extends slide amid risk aversion and a weaker dollar.
  • EUR/CHF heads for the lowest close in two months.

The Swiss franc is having the best day in months on Thursday on the back of an unexpected rate hike from the Swiss National Bank. The USD/CHF dropped further during the American session and reached the lowest level in ten days, under 0.9700.

From a stronger CHF to a weaker USD

The Swiss franc jumped across the board earlier on Thursday following a 50 basis points rate hike from the Swiss National Bank from -0.75 to -0.25. Also, comments about the exchange rate, with references to the Swiss franc not being “highly valued”, triggered the CHF’s rally. “The updated forecasts don’t suggest any rush to tighten.  However, the swaps market is pricing over 350 bp of tightening over the next 12 months that would see the policy rate peak near 3.25% vs. 1.25-1.50% at the start of this week,” explained analysts at BBH.

During the American session, the driver in the USD/CHF slide was a weaker US dollar. The greenback lost momentum despite risk aversion and amid a pullback in US yields. The USD/CHF is trading at 0.9680/85, at the lowest level in ten days, down more than 250 pips for the day. The move faces a support area at 0.9640 and then the May low at 0.9540.

The pair is back under the 20-day moving average and has made a sharp reversal after being rejected again from above 1.0000. The greenback needs to recover 0.9725 initially to alleviate the bearish pressure. Above the next resistance is seen at 0.9800 and 0.9870.

The EUR/CHF is falling more than 200 pips. It bottomed at 1.0127, the weakest since April 13 and then rebounded modestly to 1.0175. Below 1.0125, attention would turn to the April low of 1.0085.

Technical levels


Today last price 0.9688
Today Daily Change -0.0256
Today Daily Change % -2.57
Today daily open 0.9944
Daily SMA20 0.9718
Daily SMA50 0.9691
Daily SMA100 0.9479
Daily SMA200 0.9347
Previous Daily High 1.005
Previous Daily Low 0.9932
Previous Weekly High 0.9898
Previous Weekly Low 0.9606
Previous Monthly High 1.0064
Previous Monthly Low 0.9545
Daily Fibonacci 38.2% 0.9977
Daily Fibonacci 61.8% 1.0005
Daily Pivot Point S1 0.99
Daily Pivot Point S2 0.9857
Daily Pivot Point S3 0.9782
Daily Pivot Point R1 1.0019
Daily Pivot Point R2 1.0093
Daily Pivot Point R3 1.0137



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD recovers above 1.0150 as dollar loses strength

EUR/USD recovers above 1.0150 as dollar loses strength

EUR/USD staged a rebound in the second half of the day and turned positive above 1.0160. The disappointing Housing Starts data from the US caused the dollar rally to lose its stream and helped the pair erase its losses. The cautious mood, however, limits EUR/USD's upside. 


GBP/USD gains traction, rises toward 1.2100

GBP/USD gains traction, rises toward 1.2100

GBP/USD has turned north during the American trading hours and climbed toward the 1.2100 area. The dollar lost its strength after the US data showed a significant decline in Housing Starts in July and the US Dollar Index retreated from multi-week highs toward 106.50.


Gold stays below $1,780 as US yields push higher

Gold stays below $1,780 as US yields push higher

Gold came under renewed bearish pressure in the early American session and dropped toward $1,770. The benchmark 10-year US Treasury bond yield is up more than 2% on the day above 2.8%, not allowing XAU/USD to capitalize on renewed dollar weakness.

Gold News

Three reasons why meme coins Dogecoin and Shiba Inu are hot again

Three reasons why meme coins Dogecoin and Shiba Inu are hot again

Dogecoin and Shiba Inu prices break into a rally, offering holders gains. Dogecoin offered holders 16% gains over the past week, and competitor Shiba Inu yielded 30% profits.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!