According to experts of the Forex market, notably the weakened dollar fell to more than a week lows against the franc USD/CHF on Thursday, a day after the Federal Reserve indicated that rates will remain at current levels, despite the improvement in the U.S. economic outlook, as well as after Swiss National Bank kept its monetary policy unchanged.
According to the results of the two-day meeting on Wednesday, the Fed has narrowed its bond purchase program by 10 billion dollars per month to $ 35 billion, and said that the U.S. economy is "fairly basic forces" to be allowed to continue narrowing. The dollar's decline happened after Fed Chairman Janet Yellen did not report when it can start rising interest rates.
Central Bank acknowledged the recent increase in inflation and falling unemployment, but still lowered the forecast for economic growth this year due to "unexpected reduction" in the first quarter due to unusually severe weather conditions this winter. "Meanwhile, on Thursday, the Swiss National Bank kept its benchmark interest rate unchanged near zero, and reaffirmed its commitment to the minimum exchange rate of CHF1, 20 for the euro," - says the Forex experts. In an accompanying statement, the bank said that the Swiss franc is "still high."
Frank does not rise above 0.9000
As said the experts of the Forex Broker Company HY Markets, the dollar fell against a basket of major currencies after the Fed lowered the forecast of key macroeconomic indicators. According to Fed Chairman Janette Yellen, the Fed plans to maintain low interest rates for an extended period of time even after the asset purchase program is completed.
According to Yellen "in the current quarter, economic activity recovered in the future, this process will continue at a moderate pace. However, despite the decline in the unemployment rate, other indicators show a significant degree of underutilization of the labor market. "
USD/CHF today, on June 19, remains below Chf0.9000. Above Chf 0.9030/35 (last Thursday) resistance at Chf 0.9080 (maximum of 31 January). "Support is Chf0.8900. Below support remains at Chf0.8860 (May 12 lows) and Chf0.8780", - say the analysts of the HY Markets Company (included in the Top Rated Forex Brokers of the Masterforex-V World Academy).