USD/CHF fades a spike to 0.9735 on SNB’s status-quo

The USD/CHF pair is seen reversing a renewed uptick to near 0.9735 region, following the SNB interest rates decision.

USD/CHF drops back towards 0.9700

The USD/CHF pair failed once again near 0.9735/40 barrier, as demand for the Swiss franc picked-up pace, despite intervention talks by the SNB. The Swiss franc pays little heed to the SNB’s rhetoric on the domestic currency.

The latest leg higher in the spot can be mainly attributed resurgent USD demand, as the European traders cheer the hawkish Fed rate hike, driving Treasury yields back into positive territory.

The spot now looks forward to the industrial production, jobless claims and Philly Fed manufacturing index slated for release during the NA session.

USD/CHF Technical levels                

Karen Jones, Analyst at Commerzbank explains, “USD/CHF near term is correcting higher. The market has eroded the 20 day ma at .9703, and upside potential remains near term for gains to .9800/55. The market last week found some nearby support at .9614, the base of a 2 year channel and bounced higher from here. The March low and 30th May high lie at .9808/14 and we suspect that the market may struggle here.”