Swiss Franc edges lower after SNB leaves rates unchanged as expected

• USD/CHF returns to levels beyond 0.8000, nearing two-and-a-half-month highs, at 0.8015.
• The SNB has left rates unchanged at 0% and hints at a steady monetary policy in the mid-term.
• The US Dollar holds gains following a "hawkish hold by the Fed on Wednesday.

The Swiss Franc gives away previous gains against the US Dollar (USD) with the USD/CHF pair turning positive on daily charts as the Swiss National Bank (SNB) confirmed its decision to leave rates unchanged. The pair has popped up above 0.8000 following the interest rate decision, approaching two-and-a-half-month highs at 0.8015.

The Swiss central bank has left its benchmark interest rate steady at 0% for the twelfth consecutive time, as it was widely expected. The bank’s statement acknowledges a recent uptick in inflation due to higher energy prices, yet with medium-term inflationary pressures virtually unchanged, which suggests that the monetary policy is unlikely to change in the coming months

The SNB Chairman, Martin Schlegel, is speaking to the press at the time of writing, providing further details about the bank’s economic forecasts and the monetary policy outlook.

Earlier on the day, data released by Swiss customs revealed that the Trade Balance surplus widened to CHF 6.11 billion in May, doubling up April’s CHF 3.05 billion surplus. The figures provided mild support to the Swissie at the European session opening.

The Swiss Franc dropped more than 0.8% on Wednesday as a hawkishly-leaning Federal Reserve (Fed) sent the US Dollar rallying across the board.  The Fed kept interest rates on hold in the first meeting under Kevin Warsh, but the new chairman cleared doubts about his commitment to bring inflation under control, while the dot plot showed that half of the committee members see at least one rate hike before the year-end.