FOMC minutes show central bank slip on the decision to cut rates.
Swiss franc among worst performers on risk appetite consolidates losses against USD after minutes.
The USD/CHF pair rose broke above 0.9820 after the release of the FOMC minutes, reaching the highest level since early August. Initially, it rose but then pulled back toward 0.9800, before bouncing again to the upside. As of writing trades at daily highs at 0.9826.
FOMC minutes offers a modest boost to USD on a quiet day
The FOMC minutes showed that some members preferred a rate cut of 50bps in order to address low inflation while those who wanted a 25bps saw the move as a recalibration of the policy stance, the “mid-cycle adjustment” to face the change in the outlook. “Several” officials favored keeping rates unchanged. Jerome Powell will deliver a speech on Friday.
The greenback is trading above the level it had before the minutes. It broke to the upside after trading during hours in a tight range. The Swiss franc is among the worst performers weakened by risk appetite.
USD/CHF holds bullish bias
The pair resume the upside after making a pullback to 0.9775. It held above key short-term support and rebounded, holding in an ascendant channel. To the upside, the next resistance is seen at 0.9830 followed by 0.9855. On the flip side, the immediate support might lie at 0.9795, followed by 0.9785 (uptrend line) and 0.9740.
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.