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22 Apr 2015
USD/CHF extends gains, approaches 0.9700
FXStreet (Córdoba) - USD/CHF rose further during the American session and printed a fresh 6-day high at 0.9690 as the Swiss franc remains weak across the board.
USD/CHF keeps rising boosted by SNB
The Swiss franc dropped sharply across the board after the ">Swiss National Bank (SNB) announced that it has considerably reduce the ground of sight deposit accounts that are exempt from negative interest rates.
SNB actions boosted speculations about another rate cut but according to Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, the move was not driven by monetary policy considerations, but by concerns about fairness. “For example, private sector pensions were subject to the negative deposit rate, but not government or SNB pension funds. Some members of parliament objected to the lack of fairness.”
USD/CHF was trading around 0.9550 before the announcement and then jumped. Currently trades at 0.9665, more than 150 pips above daily lows.
USD/CHF keeps rising boosted by SNB
The Swiss franc dropped sharply across the board after the ">Swiss National Bank (SNB) announced that it has considerably reduce the ground of sight deposit accounts that are exempt from negative interest rates.
SNB actions boosted speculations about another rate cut but according to Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, the move was not driven by monetary policy considerations, but by concerns about fairness. “For example, private sector pensions were subject to the negative deposit rate, but not government or SNB pension funds. Some members of parliament objected to the lack of fairness.”
USD/CHF was trading around 0.9550 before the announcement and then jumped. Currently trades at 0.9665, more than 150 pips above daily lows.