Swiss Frank (CHF) falls noticeably Ahead of SNB’s Interest Rate Decision, Be Watchful; June 17, 2021
Swiss Interest Rate Decision
Today Swiss will come up with the Interest Rate decision at 0730 GMT/1300 IST followed by Press Conference at 0800 GMT/1330 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. This rate is the SNB’s main operating target. The decision is usually priced into the market, so it tends to be overshadowed by the Monetary Policy Assessment.
SNB is likely to repeat that Interest Rates will stay low and that it will continue to intervene in the FX market to weaken the Swiss franc, a practice it has resumed lately as the currency started to gain ground. Most probably the SNB will be among the last central banks to raise rates over the next years – if all other Central bank will do.
Let’s see how CHF has reacted during the previous data release:
- CHF falls sharply ahead of SNB’s Interest Rate Decision.
- The pair made intraday high at 0.9106 and low at 0.9075 mark.
- A day chart is slightly bearish but H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above 0.9132 will test further resistances.
- Alternatively, a consistent close below 0.9062 will check further supports.
Take a look and do trade wisely!