- Swiss franc rises after ECB meeting.
- ECB announces that it intends to raise the reference interest rate in July.
- USD/CHF moves away from lows in three weeks.
USD/CHF weakened after the European Central Bank meeting and pulled back from three-week highs at 0.9800 to 0.9722. It is trading at 0.9750, moving away from the lows in the face of a general strengthening of the dollar.
The ECB’s decision to leave interest rates unchanged and to announce the end of the purchase program as of July 1 and which intends to raise rates by 25 basis points in July, did not have a lasting positive impact on the euro.
This time around, the euro and Swiss franc moved in opposite directions, sending EUR/CHF down sharply from a one-month high of 1.0515 to 1.0370.
The Swiss currency became one of the best performers. For its part, the dollar, despite falling against the Swiss franc, is rising in the market, underpinned by a drop in the price of shares on Wall Street and a rise in Treasury bond yields.
In the US, a rise in requests for unemployment benefits to a maximum in 20 months was known. On Friday it will be the turn of the retail inflation figure for May, which is key ahead of next week’s FOMC meeting.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
