- US dollar tumbles across the board during Powell’s press conference, after the FOMC meeting.
- USD/CHF about to test September lows, around 0.9800.
The USD/CHF is falling sharply for the third day in a row and is about to post the lowest daily close since early September. The pair dropped modestly after the Federal Reserve (Fed) announced its decision, but later it accelerated the decline amid a sell-off of the US dollar.
US yields move lower despite signs of no more rate cuts
The Fed, as expected, kept the interest rate unchanged at 1.50-1.75%. The statement contained no significant changes from the October meeting and the projections from FOMC members showed they don’t see moves in rates next year.
Despite the rate path projected from the “dot plot,” US yields turned lower, weakening the greenback across the board. The US Dollar Index fell toward 97.00 and is on its way to the lowest close since July.
The weaker greenback pushed USD/CHF sharply lower. The pair bottomed so far at 0.9813, the lowest intraday level since September 5. If the decline continues, the next key support is located at 0.9795/0.9800 (September lows).
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