USD/CHF (current price: 0.9926)
The Swiss Franc has been losing ground in recent weeks compared to the U.S. Dollar as Swiss economic trends are looking weaker than the U.S. numbers, and the SNB is not likely to tighten monetary conditions in the near future. The pair also benefited from the positive change in investor sentiment as the Franc is considered a safe haven currency. The cross drifted above the upper boundary of the long-term declining trend channel, possibly signaling a major change, as USD/CHF also crossed above the, now rising, 200-day MA.
Our assessment: USD/CHF still could be headed above parity despite the low-volatility consolidation of the last two weeks, as more upside is seen for the Dollar before the Fed’s next meeting.
