- Swiss franc drops against its main rivals, SNB intervention?
- USD/CHF holds bullish bias in the short-term but momentum eases.
The USD/CHF rose to 0.9686 after the beginning of the American session, reaching the highest level since last Thursday and then pulled back. As of writing trades at 0.9635, near the session low.
The retreat from the peak took place amid a decline of the US dollar across the board. The greenback rose to multi-day highs but over the last hours turned to the downside, erasing gains. The DXY climbed toward 100.00 and now is back at 99.25, close to Monday’s close.
The Swiss franc holds a negative tone against its main European rivals. EUR/CHF rose back above 1.0600 and spiked to 1.0620, the highest since Friday. The area around 1.0550/60 has become a strong support.
“The Swiss franc maintains its safe-haven appeal with EURCHF grinding steadily lower in recent weeks. Thus far, the cross has held above 1.05, however, amid signs that the SNB is actively working to prevent runaway CHF appreciation. The panic phase of the latest wave of risk aversion may be complete. Sentiment is likely to remain fragile for some time, however, as global growth falls off the cliff. This suggests CHF strength is unlikely to reverse course any time soon”, explained analysts at Rabobank.
USD/CHF Technical levels
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.
Recommended content
Editors’ Picks
EUR/USD climbs to daily highs near 1.0770 on Dollar selling
EUR/USD manages to regain extra upside traction on the back of the renewed sell-off in the Greenback, reaching fresh daily highs in the 1.0770 region, or. two-day peaks.
GBP/USD hovers around 1.2500 post-BoE
GBP/USD alternates gains with losses around the 1.2500 neighbourhood amidst extra weakness in the Dollar, while market participants continue to digest the BoE event.
Gold poised to resume its advance
XAU/USD now gathers fresh steam and advances to the highest level in many sessions north of the $2,330 mark per troy ounce on the back of further selling pressure hurting the Greenback as well as mixed US yields.
Solana meme coins TREMP, BODEN rise after Donald Trump’s pro-crypto stance
Solana-based meme coins TREMP and BODEN post nearly 125% and 7% gains on Thursday. Former US President Donald Trump says his campaign will likely accept crypto donations.
Bank of England inches one step closer to a summer rate cut
The Bank of England is undoubtedly turning more optimistic, but it’s keeping its options open amid some uncertainty surrounding the near-term inflation numbers. We still narrowly expect the first rate cut in August.