USD/CHF (current price: 0.9763)
The Swiss Franc has been losing ground against the U.S. Dollar in recent days, as investors gave more and more chance to a FED rate hike next week, while the Swiss National Bank is unlikely to tighten monetary conditions in the near future. The pair bounced higher from the 0.95 level in August, but it still trades in a declining long-term trend, just below the all-important 200-day MA at 0.9825. The SNB will hold its monetary policy meeting tomorrow, and the current trend might continue, if the central bank doesn’t surprise traders.
Our assessment: The pair is consolidating after the huge rally of August, as all eyes are on the central banks, while both economies continue to grow at a slow pace.
