The Swiss National Bank made its quarterly rate decision and made no changes: the interest rate remains minimal, and the floor of 1.20 under remains unchanged. The same determined text repeated itself.
EUR CHF Lower After SNB – Click image to enlarge
Towards the decision, there was some speculation that the SNB would lift the peg to 1.25, given the low CPI. EUR/USD which traded above 1.21 for a day or so, dropped instantly by around 40 pips. The reaction was also felt in EUR/USD.
Euro/dollar traded just under the 1.31 level, after enjoying the Fed decision of QE4. However, the Swiss decision sent it lower, as low as 1.30 before it reached the current level of 1.3063.
EUR USD Lower After SNB – Click image to enlarge
There is a big bulk of US releases to shake the markets at 13:30 GMT.
For more, see the EUR/USD forecast.
