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USD/CHF holds steady near monthly tops, above 0.9700 mark post-SNB

USD/CHF holds steady near monthly tops, above 0.9700 mark post-SNB

  • The SNB decided to leave its sight deposit rate unchanged at -0.75%.
  • The decision did little to provide any meaningful impetus to USD/CHF.
  • A sustained USD buying remained supportive of the pair’s mild bid tone.

The USD/CHF pair traded with a mild positive bias and held steady above the 0.9700 mark, or monthly tops post-SNB monetary policy decision.

The pair extended its recent bullish trajectory and gained some follow-through traction for the third consecutive session on Thursday – also marking its fifth day of a positive move in the previous six – amid sustained US dollar buying.

The greenback remained well supported by concerns over tightening liquidity conditions and a rush to hoard cash amid worries about the economic fallout from the coronavirus pandemic and a sudden spike in volatility across the global financial markets.

The intraday move seemed rather unaffected by the fact that the Swiss National Bank (SNB) – in the latest monetary policy meeting held this Thursday – decided to maintain status-quo and leave its sight deposits rate unchanged at -0.75%.

Given that SNB’s limited policy room and the fact that the recent interventions, to some extent, have been effective to stabilize the market, the announcement did little to influence traders or provide any meaningful impetus to the major.

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