Forex: USD/CHF: SNB’s Libor Rate unchanged at

on Dec 12, 2013
Updated: Oct 21, 2019
Listen Thursday, December 12th:_ The USD/CHF today increased after the Swiss National Bank announced that the three-month target Libor range remained at its current level – between zero and 0.25 percent – in line with expectations. The central bank also kept the franc cap against the euro unchanged at 1.2000. Both decisions were made in order to support the economy and limit the downside risks of stronger franc.

In its Monetary policy assessment of 12 December 2013, the SNB said that the nation’s currency was still at high levels and that the bank was “ready to enforce the minimum exchange rate, if necessary, by buying foreign currency in unlimited quantities, and to take further measures as required”.
The statement also said that the SNB expects the inflation rate to be unchanged from -0.2 percent in 2013, but it lowered its inflation forecasts for 2014 and 2015 to 0.2 and 0.6 percent respectively. The bank did not identify any inflation risks for the country “in the foreseeable future”.

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“In Switzerland, the economy continued to develop favourably in the third quarter. However, there are signs that growth may weaken temporarily in the fourth quarter. The SNB continues to expect growth of 1.5–2.0 percent for 2013. For 2014, it expects a growth rate of around two percent”.

The SNB assessment stated that “in an environment of persistently low interest rates, the danger of a further build-up of imbalances on mortgage and real estate markets remains considerable” and that is why the bank will continue to observe “the situation very closely” in order to adjust the countercyclical capital buffer if needed.
The pair has risen today after yesterday hitting its lowest point since 4 November 2011, at 0.8838. Right now the pair is trading at 0.8879, 0.12 percent above today’s opening price. The intraday trading range thus far is from 0.8858 to 0.8886.

The US Census Bureau is scheduled to publish November Retail Sales data at 13.30 UTC today.
Simultaneously, the US Department of Labour is due to release last week’s Unemployment Insurance Initial Claims.
Resistance levels: 0.8880, 0.8900 and 0.8915.
Supports levels: 0.8865, 0.8845 and 0.8820.
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