USD/CHF jumps to three-month highs after FOMC meeting


  • US Dollar rises after FOMC statement, gains speed during Powell’s press conference. 
  • USD/CHF heads for the highest close since June 18. 

The USD/CHF pair jumped to 0.9979 after the FOMC meeting amid a rally of the US Dollar across the board. The Greenback strengthened amid growing division within the Fed. 

Fed cut rates as expected, rising disagreement

The Fed cut interest rates by 25bp as widely expected to 1.75-2.00%. The decision was not unanimous. Esther George and Eric Rosengren again opposed the rate cut while James Bullard wanted a 50bp cut. 

According to ING analysts, the Fed “has provided a confused message of upwardly revising its GDP forecast despite being concerned about growth while ignoring the recent pick-up in inflation completely. Moreover, there is no consensus on additional rate cuts being needed.”

Jerome Powell argued that the rate cut was due to developments and insurance against risks. He mentioned since the last meeting they have seen additional weakness abroad and an escalation in trade tensions. 

After the decision, US President Trump criticized again the Fed for its policy. He twitted: “Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision!  A terrible communicator!” Recently Trump mentioned they should have negative rates

USD/CHF holding above critical 0.9950

The post FOMC rally pushed USD/CHF above the key resistance 0.9950 that capped the upside in July and August. A close around current levels (0.9970) would point to a test of the parity level; above the next resistance might be seen at 1.0010. 

Now, 0.9950 has become a support level. A slide below would alleviate the bullish tone and could represent another rejection from 0.9950, leaving the pair vulnerable to more losses. 
 

USD/CHF

Overview
Today last price 0.9978
Today Daily Change 0.0047
Today Daily Change % 0.47
Today daily open 0.9931
 
Trends
Daily SMA20 0.9867
Daily SMA50 0.9842
Daily SMA100 0.9914
Daily SMA200 0.995
 
Levels
Previous Daily High 0.9969
Previous Daily Low 0.9912
Previous Weekly High 0.9947
Previous Weekly Low 0.9854
Previous Monthly High 0.9976
Previous Monthly Low 0.9659
Daily Fibonacci 38.2% 0.9947
Daily Fibonacci 61.8% 0.9934
Daily Pivot Point S1 0.9906
Daily Pivot Point S2 0.988
Daily Pivot Point S3 0.9849
Daily Pivot Point R1 0.9963
Daily Pivot Point R2 0.9994
Daily Pivot Point R3 1.002

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits weekly lows amid poor PMIs, trade headlines

EUR/USD is trading around 1050, the lowest in a week. Euro-zone PMIs mostly disappointed. President Trump said a trade deal is potentially close, but markets are awaiting details.

EUR/USD News

GBP/USD tumbles to around 1.2850 amid poor data, USD strength

GBP/USD is trading weekly lows around 1.2850. UK PMIs fell short of expectations and reflect contraction. Election speculation continues and the dollar is gaining ground.

GBP/USD News

USD/JPY trades flat in Asia, awaits fresh trade-deal clarity

USD/JPY is trading flat around 108.60 in a 15-pips narrow range following a mixed session overnight for financial markets. A lack of clarity on the US-China trade front keeps the markets in a tizzy. 

USD/JPY News

Gold: Remains vulnerable to retest monthly lows, around $1445 area

Barring a couple of knee-jerk spikes, gold has been oscillating well within a range over the past one week or so and remained capped below the 100-day SMA.

Gold News

Crypto Today: Remaining in the red after the Binance raid, NEO tumbles, Tezos shines

The sell-off in crypto markets is unrelenting, with further falls across the board. China's raid of Binance's offices in Shanghai has weighed on the mood.

Read more

Forex MAJORS

Cryptocurrencies

Signatures