SNB Vice Chairman Fritz Zurbruegg said currency market interventions had become an increasingly important tool since the financial crisis and the euro zone debt crisis had pushed up the safe-haven franc.
SNB Chairman Thomas Jordan gave the Swiss government the same message at their annual meeting to discuss the state of the export-led economy and . He pointed out that with negative interest rates was geared to the current situation with a still markedly overvalued Swiss franc and that the National Bank is still active on the foreign exchange market if needed.
On the other hand, Fed policymakers remain hawkish in their opinions. Boston Fed President Eric Rosengren said the would hike interest rates more aggressively than planned if the newly elected U.S. government significantly stimulates the economy.
policymaker James Bullard said that it would need a surprise for the not to raise U.S. interest rates next month. He said the only reason to hold off would be the kind of big shocks that caused it to pull back in the past, such as widespread global market or bad U.S. jobs data.
This divergence in monetary policies between the Fed and the SNB should support further rise in the USD/CHF . Our trading strategy is to buy the USD/CHF on dips. We think that a corrective move is likely when the USD/CHF reaches 1.0066 (76.4% of 1.0259-0.9439 drop).
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