- USD / CHF was based on Wednesday’s gains and updates multi-week highs.
- The US Dollar Index retains its bullish momentum on Thursday.
- Swiss National Bank kept its policy setup unchanged in June.
The pair USD/CHF it gained more than 100 pips on Wednesday and continued to climb on Thursday. After hitting its best level since late April at 0.9167, the pair appears to have entered a consolidation phase and was last seen gaining 0.73% on the day at 0.9151.
DXY is up over 1% this week
The broad-based USD strength fueled the USD / CHF rally in the final US session on Wednesday. The FOMC’s Updated Projections Summary revealed that the number of policymakers seeing a takeoff in the federal funds rate from zero in 2023 increased to 13 from seven in March. In addition, the president of the FOMC, Jerome Powell, acknowledged that they do not rule out the possibility that inflation remains high for longer than expected.
Driven by the radical change in the FOMC’s rate outlook, the US Dollar Index (DXY) gained nearly 1% on Wednesday and stretched to a new two-month high of 91.84 on Thursday.
On the other hand, the Swiss National Bank (SNB) announced earlier in the day that it left its policy setting unchanged as expected. In addition, the SNB reiterated that the CHF continues to be highly valued and that it will maintain its expansionary monetary policy.
Meanwhile, US data showed that initial jobless claims rose to 412,000 in the week ending June 12. This reading was worse than the market expectation of 359,000, but did not provoke a noticeable reaction from the market.
Technical levels
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