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    USD/CHF: SNB has left interest rate unchanged on 17.03.2016

    It became known today that Swiss National Bank decided not to change interest rate. The rate on deposit is -0.75%, target range for the three-month interest rate LIBOR is in the range of -1.25% -0.25%.

    However, this news did not prevent the pair USD/CHF from the decline, which started yesterday due to the US Fed decision to leave interest rate at the level of 0.5%. In February, inflation in Switzerland has declined. As it became known producer price index and imports prices fell by 0.6% in February compared with the value of 4.6% in the previous month and by 4.6% versus the value of last February.

    It is expected that economic growth rate will gradually accelerate in the country despite high rate of the national currency. Swiss National Bank can conduct intervention in the currency market if needed.

    Government’s expert group assumes that GDP will rise by 1.8% in 2017. Meanwhile, the pair USD/CHF continues to decline after yesterday’s decision by the US Fed.

    However, when selling the pair you should remember of probability of intervention by Swiss National bank, of which the bank usually does not announce either in advance or afterwards.

    Negative levels of the interest rate and possibility of intervention will prevent the rise in Swiss franc.


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