USD/CHF extends gains after FOMC minutes, hits two-week highs

Matías Salord FXStreet

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.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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