USD/CHF: Positions of SNB and US Fed Remain Different
Last Friday the USD significantly rose against major currencies. Expectations that the US Fed will increase interest rates in June supported by the positive US macro-economic statistics. The USD also grow against the other currencies, including safe -haven currencies amid the positive news. Last Friday at the COMEX June futures for gold fell by 1.6%. The USD is growing against the Yen and Swiss franc.
The pair USD/CHF has already won back half of the losses of the previous month.
According to the data released last week, the number of initial applications for unemployment benefits in the USA fell to the lows in 40 years (247 000).
The interest rate decisions by the ECN and the following -up comments by Mr. Draghi on to future policy of the Bank have also helped the rise in the USD last week.
This Friday (10:00 GMT+2) president of Swiss National Bank Mr. Jordan will give a speech, which may affect exchange rate of Swiss Franc. Market volatility may also increase.
Earlier, Swiss National Bank repeatedly indicated that it would adhere to soft monetary policy. Although rate on deposit is negative in the country (-0.75%), the Bank believes that the franc is overvalued and if needed the Bank can carry out intervention in the currency market.
However, the pair USD/CHF may be significantly affected by the US Fed interest rate decision, which will be released on Wednesday at 20:00 (GMT+2), and the following - up comments of the US Fed on the monetary policy in the USA at (20:30).
Monetary policy of SNB and the policy of the US Fed (in case of monetary policy tightening), will support the pair USD/CHF until next meeting of the US Fed.