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7 Jan 2014
USD/CHF rallies on SNB data and dollar momentum
FXstreet.com (London) - USD/CHF continues to climb on an improving dollar outlook and was given a boost this morning on data released from the Swiss National Bank showing that its foreign currency reserves declined slightly in December. The pair is currently trading at CHF0.9082.
SNB remains committed to defending CHF
The SNB’s foreign currency reserve’s fell by 0.15 percent in December.to CHF435.19, down from a revised CHF435.85 in November.
While Swiss policymakers have stated that they haven’t intervened in the markets since September 2012, the SNB still maintains its near-record high foreign reserves and maintains its CHF1.2000 placed under the EUR/CHF rate in September 2011 in an effort to stymie deflationary pressures from an overheating franc. While much of the European volatility that helped drive the haven flows into the franc has abated, SNB president Thomas Jordan has said that the central bank remains committed to enforcing the floor for the foreseeable future.
Most recent data showed that the SNB holds 48 percent of its foreign-currency reserves in euros and 27 percent in dollars.
Since the beginning of the year, USD/CHF has gained 1.51 percent, driven by an improved dollar outlook following the US Federal Reserve’s decision that the US economic outlook has sufficiently improved to warrant tapering its monthly asset purchases by USD10bn.
USD/CHF continues to rally
USD/CHF continues to climb, currently trading at CHF0.9082, up 0.46 percent on the session open of CHF0.9039, however is straying into overbought territory which could bring a retracement as momentum wanes.
SNB remains committed to defending CHF
The SNB’s foreign currency reserve’s fell by 0.15 percent in December.to CHF435.19, down from a revised CHF435.85 in November.
While Swiss policymakers have stated that they haven’t intervened in the markets since September 2012, the SNB still maintains its near-record high foreign reserves and maintains its CHF1.2000 placed under the EUR/CHF rate in September 2011 in an effort to stymie deflationary pressures from an overheating franc. While much of the European volatility that helped drive the haven flows into the franc has abated, SNB president Thomas Jordan has said that the central bank remains committed to enforcing the floor for the foreseeable future.
Most recent data showed that the SNB holds 48 percent of its foreign-currency reserves in euros and 27 percent in dollars.
Since the beginning of the year, USD/CHF has gained 1.51 percent, driven by an improved dollar outlook following the US Federal Reserve’s decision that the US economic outlook has sufficiently improved to warrant tapering its monthly asset purchases by USD10bn.
USD/CHF continues to rally
USD/CHF continues to climb, currently trading at CHF0.9082, up 0.46 percent on the session open of CHF0.9039, however is straying into overbought territory which could bring a retracement as momentum wanes.