USD/CHF surges sharply and climbs above 0.8900 as SNB cut rates

Source Fxstreet
Jun 20, 2024 19:33
  • Swiss Franc weakens as SNB cuts rates from 1.50% to 1.25%, with potential for another cut in September.
  • USD/CHF jumps from 0.8833 to 0.8911, breaching a key resistance level post-rate cut.
  • Softer US jobless claims and deteriorating housing data increase speculation of Fed rate cuts in 2024.

The Swiss Franc extended its losses on Thursday after the Swiss National Bank (SNB) decided to cut rates for the second time in the year, lowering rates from 1.50% to 1.25% during the European session. The USD/CHF trades at 0.8911, up 0.83%.

USD/CHF jumped above 0.8900 after the Swiss National Bank reduced rates to 1.25%, hinting further easing

According to Reuters, the SNB looks likely to follow Thursday’s second consecutive rate cut in September. SNB Chairman Thomas Jordan said the CHF strengthened significantly in recent weeks, adding that the central bank is ready to intervene in the FX market.

If the SNB wants to prevent the Swissie from appreciating, it could slash rates in September instead of intervening and selling Francs in the markets.

The USD/CHF rose from around 0.8833 to 0.8911 in the first two hours after the SNB cut and breached a key resistance level.

Aside from this, the latest US Initial Jobless Claims report showed that more people than expected filed for unemployment benefits, highlighting that the labor market is cooling. With US housing deteriorating further, traders' hopes remained higher, and the Federal Reserve could cut rates at least twice.

USD/CHF

Overview
Today last price 0.8911
Today Daily Change 0.0066
Today Daily Change % 0.75
Today daily open 0.8845
 
Trends
Daily SMA20 0.8985
Daily SMA50 0.9057
Daily SMA100 0.8961
Daily SMA200 0.8893
 
Levels
Previous Daily High 0.8854
Previous Daily Low 0.8834
Previous Weekly High 0.8993
Previous Weekly Low 0.8893
Previous Monthly High 0.9225
Previous Monthly Low 0.8988
Daily Fibonacci 38.2% 0.8847
Daily Fibonacci 61.8% 0.8842
Daily Pivot Point S1 0.8834
Daily Pivot Point S2 0.8824
Daily Pivot Point S3 0.8814
Daily Pivot Point R1 0.8855
Daily Pivot Point R2 0.8865
Daily Pivot Point R3 0.8875

 

Swiss Franc PRICE Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Japanese Yen.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.35% 0.45% 0.49% -0.15% 0.23% 0.16% 0.80%
EUR -0.35%   0.09% 0.17% -0.50% -0.12% -0.20% 0.42%
GBP -0.45% -0.09%   0.06% -0.58% -0.20% -0.29% 0.33%
JPY -0.49% -0.17% -0.06%   -0.69% -0.27% -0.36% 0.27%
CAD 0.15% 0.50% 0.58% 0.69%   0.37% 0.31% 0.92%
AUD -0.23% 0.12% 0.20% 0.27% -0.37%   -0.08% 0.55%
NZD -0.16% 0.20% 0.29% 0.36% -0.31% 0.08%   0.62%
CHF -0.80% -0.42% -0.33% -0.27% -0.92% -0.55% -0.62%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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