JamieHolmes
Long

Return to parity USD-CHF, -ive interest rate effect kicking in?

FX:USDCHF   U.S. Dollar / Swiss Franc
55 0 2
The shock decision by the SNB to introduce -0.75% deposit rates and simultaneously remove the EUR-CHF             floor of 1.2000 has opposite effects on the CHF. A higher more negative interest rate should reduce demand for and the value of CHF. The removal of the EUR-CHF             floor would see a huge appreciation in the Franc as the Euro             has been artificially maintained at a certain strong level,i.e. 1.2000, to benefit Swiss exporters. The huge upward pressure from the removal of the floor, which saw a selloff of Euros and investors move into Swiss Franc             as a safe haven. This pushed USD-CHF             down forcefully.

But now the upward driving force of negative interest rates seems to be kicking in. The USD-CHF             is up over 2% today. The price has moved above the conversion line and the conversion line has moved above the base line, both weak bullish signals. If there is a daily close above 0.9269, this will be bullish . Also, the price action looks set to move above the cloud, i.e. above 0.92648. If the price maintains above this level, then we should see a swift return to parity.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out