- USD / CHF decline remains limited despite broad USD weakness.
- SNB’s Jordan repeats that the US report has no impact on policy.
- The US Dollar Index remains in the red below 90.00.
The pair USD/CHF it rose modestly to the 0.8850 area during US business hours, but failed to extend its rebound. At time of writing, the pair was down 0.2% on the day at 0.8840.
SNB Ignores US Report Appointing It Swiss Currency Handler
Despite strong selling pressure surrounding the USD, the pair’s decline remains limited following comments from Swiss National Bank Chairman Thomas Jordan on the policy outlook.
On Wednesday, the US Treasury named Switzerland a currency manipulator. The SNB was quick to respond in a statement, saying that interventions in the foreign exchange market do not give Switzerland an unfair competitive advantage. Commenting on the same issue, Jordan reiterated that the US report will have no impact on the SNB’s monetary policy. Meanwhile, the SNB left its policy rate unchanged at -0.75% as expected.
On the other hand, the US Dollar Index (DXY) fell to its lowest level since April 2018 at 89.75 on Thursday and did not allow the USD / CHF to gain traction. The risk-positive market environment supported by US stimulus hopes and Brexit optimism coupled with the US Federal Reserve’s commitment to extremely loose policy continued to weigh on the dollar.
Earlier in the day, data from the US showed initial jobless claims rose to 885,000 last week. However, both the Nasdaq Composite and the S&P 500 recorded new all-time highs after the opening bell and the DXY remained deeply in negative territory.
Technical levels
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