Swiss Franc Mixed After SNB Policy Announcement
June 18 2020 - 12:15AM
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The Swiss franc came in mixed against its major counterparts in
the European session on Thursday, after the Swiss National Bank
maintained its policy rate and interest on sight deposits and
downgraded inflation forecast due to weaker growth prospects and
lower oil prices.
The SNB held its policy rate and interest on sight deposits at
-0.75 percent, as expected.
The bank reiterated that it is prepared to intervene more
strongly in the foreign exchange market to contain the strength of
the Swiss franc.
The central bank said that its expansionary monetary policy
helps stabilise economic activity and price developments in
Switzerland.
The SNB cut inflation forecast due to the significantly weaker
growth prospects and lower oil prices.
The currency fell against its major counterparts in the Asian
session.
The franc was down against the dollar, at 0.9503. The pair had
closed Wednesday's deals at 0.9486. The franc is seen finding
support around the 0.98 mark.
The franc edged lower to 1.0690 against the euro, from a high of
1.0661 seen at 9:30 pm ET. At Wednesday's close, the pair was
valued at 1.0665. Further decline in the currency is likely to see
support around the 1.10 level.
The franc appreciated to 1.1884 against the pound, registering a
3-day high. The pound-franc pair had finished yesterday's trading
session at 1.1910. The franc is likely to face resistance around
the 1.10 region, if it gains again.
The Swiss currency held steady against the yen, after having
declined to a 2-day low of 112.38 at 9:30 pm ET. The pair was worth
112.78 when it ended deals on Wednesday.
Looking ahead, the Bank of England's interest rate announcement
is due at 7:00 am ET. The BoE is widely expected to hold its
benchmark bank rate at 0.10 percent and expand the asset purchase
program to GBP 745 billion from GBP 645 billion.
Canada new housing price index for May and wholesale sales for
April and U.S. weekly jobless claims for the week ended June 13 are
due in the New York session.
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