The Swiss National Bank is due to deliver its latest rate decision today, and traders are bracing themselves for a volatile session, as the outcome is uncertain. There is lively debate in the market about whether the SNB will follow up last month’s rate cut with another or pause to assess further data, in line with many of their contemporaries. Inflation remains towards the upper end of the SNB’s target range, but Chairman Thomas Jordan has indicated that he feels rates are still restrictive.
The franc is now sitting at levels not seen since mid-March against the dollar, and traders are expecting significant market moves around the event. If the SNB holds rates, the franc should strengthen, potentially breaking the hourly trendline support and opening the way for fresh downside moves in USD/CHF. Conversely, a rate cut could trigger a rally back into recent ranges. Future guidance will also play a significant role, so expect volatility during the later press conference as well.
Resistance 2: 0.9090 – Trendline Resistance
Resistance 1: 0.8920 – 200 Day Moving Average
Support 1: 0.8824 – Trendline Support and Weekly Low
Support 2: 0.8726 – March Low
