USD/CHF (current price: 0.9689)
The Dollar gained more than 250 pips on the Swiss Franc in three sessions despite the release of negative ADP Employment Report on Wednesday, and the higher than expected number of newUnemployment Claims yesterday. The Swiss Franc will and the SNB will be in focus later this morning, with the release of the data on the bank’s reserves. The pair could extend the rally up to the 200-day MA at 98.4, after the strong bounce off the trend-line support three days ago.
Our assessment: The weak long-term down-trend is still intact in USD/CHF, but the current correction could extend further, if the FED’s interest rate hike remains a realistic possibility.
