When is the SNB rate decision and how could it affect USD/CHF?


SNB Interest Rate Decision Overview

The Swiss National Bank (SNB) is scheduled to release its quarterly monetary policy assessment at 0730 GMT today, with markets widely expecting the SNB to leave the sight deposit rate unchanged at -0.75% while maintaining the 3-Month Libor Target Range between -1.25% to -0.25%.

The bank is expected to reiterate the overvalued status of the CHF. The SNB is also likely to express its strong commitment to intervene in the fx markets whenever necessary.

At its June monetary policy decision, the SNB cut its inflation outlook for a fourth straight meeting, reiterated its intervention pledge and again called the Swiss Franc “highly valued.” It projected that price growth will average just 0.3% this year and 0.6% in 2020.

The focus also remains on SNB chief Thomas Jordan's press conference that will be soon followed at 0800 GMT. Traders look forward to some dovish remarks from Jordan on the interest rates outlook, given that the recent soft patch of macro data and escalating US-China trade war have prompted major global central banks to adopt a dovish stance on their monetary policy.

How could it affect USD/CHF?

The Swiss Franc is unlikely to see any major price-action on the SNB policy announcement, as a status-quo is already discounted by the markets.

In terms of the technical levels, “Should it manage to cross 200-day simple moving average (SMA) level of 0.9970, 21-day SMA around 1.0006 and five-week-old descending trend-line at 1.0023 can question buyers. In a case where the quote rallies beyond 1.0023, late-May highs around 1.0100 and 1.0125 can regain market attention. On the flipside, 61.8% Fibonacci retracement of January to April upside at 0.9915 and current month low near 0.9855 act as immediate supports for the pair. Given the sellers’ dominance past-0.9855, 0.9790 and the present year bottom around 0.9715 can lure the bears,” Anil Panchal, Analyst at FXStreet writes.

Key Notes:

Swiss government slightly ups 2019 growth forecast to 1.2%

Swiss Govt: Q1 growth was helped by positive one-off factors

About SNB Interest Rate Decision

The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Constitution and by statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stabilizing as US coronavirus cases continue to climb

EUR/USD is trading around 1.1250, pressured amid concerns about the spread of coronavirus in the US. Traders are digesting the upbeat Non-Farm Payrolls figures already out ahead of the long US weekend. 

EUR/USD News

GBP/USD attempting a bounce amid thin liquidity

GBP/USD is closer to 1.25, off the lows. Top-level EU-UK Brexit talks have been postponed until next week amid disagreements. The UK is continuing to reopen while US coronavirus cases are surging. 

GBP/USD News

Bitcoin must endorse the time of Ethereum has come

The crypto market remains in a choke point, and after signs of a possible upward shift yesterday, the market was once again disappointed to see Bitcoin in the low range of the $8900 to $9000 choke point.

Read more

Gold: There is a bearish signal on the 4-hour chart

Price action has been slow on Friday due to the bank holiday in the US as the nation celebrates independence day. This week has been an interesting one as there has been some good economic data but some very bad coronavirus news in the US. 

Gold News

S&P 500: Futures struggle to refresh two-week top

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak.

Read more

Forex MAJORS

Cryptocurrencies

Signatures