Investing.com - The U.S. dollar retreated from a seven-week high against the Swiss franc on Thursday, after the Swiss National Bank left its minimum exchange rate floor of 1.20 per euro unchanged, following its monetary policy meeting earlier.
USD/CHF pulled away from 0.9333, the pair’s highest since January 25 to hit 0.9284 during European morning trade, slipping 0.23%.
The pair was likely to find support at 0.9229, Wednesday’s low and resistance at 0.9333 the session high.
The SNB reiterated its pledge to defend the exchange rate floor with the "utmost determination," saying it was ready to buy foreign currency in unlimited quantities and would “continue to maintain liquidity on the money market at an exceptionally high level."
The exchange rate cap was introduced last September as the appreciation of the Swiss franc undermined exports and increased the risk of deflation.
The central bank also said that there are increasing signs that the Swiss economy is stabilizing and doubled its forecast for economic growth for this year to "around 1.0%".
The Swissie was also higher against the euro, with EUR/CHF slipping 0.12% to hit 1.2113.
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.
USD/CHF pulled away from 0.9333, the pair’s highest since January 25 to hit 0.9284 during European morning trade, slipping 0.23%.
The pair was likely to find support at 0.9229, Wednesday’s low and resistance at 0.9333 the session high.
The SNB reiterated its pledge to defend the exchange rate floor with the "utmost determination," saying it was ready to buy foreign currency in unlimited quantities and would “continue to maintain liquidity on the money market at an exceptionally high level."
The exchange rate cap was introduced last September as the appreciation of the Swiss franc undermined exports and increased the risk of deflation.
The central bank also said that there are increasing signs that the Swiss economy is stabilizing and doubled its forecast for economic growth for this year to "around 1.0%".
The Swissie was also higher against the euro, with EUR/CHF slipping 0.12% to hit 1.2113.
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.