Forex: USD/CHF drops to 0.9250 as SNB keeps policy
FXstreet.com (Barcelona) - The SNB will resume its monetary policy, aiming for 3-month libor at 0-0.25% and defending the EURCHF peg at 1.20. Nothing that investors weren't expecting. Market volatility around the statement allowed a USDCHF drop to 0.9250.
The Swiss State Secretariat for Economic Affairs the Swiss Government cut its economic forecast for 2013 to 1.3% from the previously estimated 1.4%, maintaining its outlook of 2012 GDP growth at 1%. "Providing the sovereign debt crisis in the Euro region re-mains under control and the global economy gradually returns to a firmer foot-ing, the Swiss economy could regain momentum during the next two years", said the report.
Earlier, the Producer and Import Prices report in Switzerland revealed an annualized rise from 0.4% to 1.2% in November, with the monthly change beating the declining consensus of -0.3%, by coming at 0.0%. The Spanish CPI eased from 3.5% to 2.9% in November, as expected, but monthly change contracted less than predicted.
"With negative tone dominating on lower timeframes studies and brief corrective action being capped by 10 day EMA at 0.9270, the upside remains protected for now", wrote Windsor Brokers analyst Slobodan Drvenica, pointing only to temporary relief if the market lifts above previous strong support zone at 0.9300/20.
The Swiss State Secretariat for Economic Affairs the Swiss Government cut its economic forecast for 2013 to 1.3% from the previously estimated 1.4%, maintaining its outlook of 2012 GDP growth at 1%. "Providing the sovereign debt crisis in the Euro region re-mains under control and the global economy gradually returns to a firmer foot-ing, the Swiss economy could regain momentum during the next two years", said the report.
Earlier, the Producer and Import Prices report in Switzerland revealed an annualized rise from 0.4% to 1.2% in November, with the monthly change beating the declining consensus of -0.3%, by coming at 0.0%. The Spanish CPI eased from 3.5% to 2.9% in November, as expected, but monthly change contracted less than predicted.
"With negative tone dominating on lower timeframes studies and brief corrective action being capped by 10 day EMA at 0.9270, the upside remains protected for now", wrote Windsor Brokers analyst Slobodan Drvenica, pointing only to temporary relief if the market lifts above previous strong support zone at 0.9300/20.
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