The dollar lost its ground after the Fed changed its "patient" approach pledging it would act appropriately according to the economic outlook. It clearly opened the door for rate cuts devaluating its currency. Both US inflation expectations for 2019 and 2020 were revised down. Swissie could benefit because of its haven feature. Pair is heading to a year low, aiming for 0.9750.
Trade closed: target reached:
USDCHF fell below 0.9750 level still digesting the Fed dovishness. Moreover, Friday US PMI data disappointed. Service PMI fell to 50.7, the lowest reading since March 2016. Manufacturing PMI came at 50.1 in June, falling from 50.5 in the month before and below the expectations of 50.4. Failing to find support pair opened the way to the multi-months lows around 0.9600.