Earlier today, the Swiss National Bank (SNB) didn't announce any changes to its monetary policy as expected. In the meantime, how is the pair trading? Gain insight into this 21 June USDCHF Fundamental Drivers Outlook.
21 June, OctaFX – The officials guided that the rates could remain unchanged in the foreseeable future because they believe that the franc is overvalued. They also increased their guidance for the inflation this year to 0.9% from the last reported 0.8%.
This increase will mostly be attributed to the higher crude oil prices. For 2019 and 2020, they estimated that inflation will be at 1.9% and 2.0% respectively. Their main concern for the Swiss economy was in the housing market where house prices have continued to increase in recent months. They believe that the pace of price gains could lead to a recession or correction in the housing market.
21 June USDCHF Fundamental Drivers Outlook
The USD/CHF pair dropped to the lowest level since Tuesday. The pair is now trading at 0.9931 mostly because of overall dollar weakness. As shown below, the pair has been trading in a horizontal support and resistance pattern.
Therefore, a drop below the important support of 0.9917 could see the pair continue declining potentially to the 0.9895 level.
This article about 21 June USDCHF Fundamental Drivers Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.