USD/CHF trading at resistance at 0.9744/46

FXstreet.com (Barcelona) - The USD/CHF has soared following the speech today on the SNB – the pair jumped to session highs at the 0.9760 before easing back to the 0.9744/46 resistance in these moments.

In his speech before the Press Club in Frankfurt on Tuesday the head of the Swiss National Bank, Thomas Jordan, assured that the current franc cap of 1.20 per euro would be maintained for as long as necessary in the face of low inflation and growth.

According to the UBS Research Team, “We think the SNB will not be willing to start selling its foreign exchange reserves anytime soon even if the EUR/CHF and USDCHF continue to rise. In particular the SNB will not want to be seen 'fine-tuning' exchange rates or cause the franc to start rebounding again. We expect the USD/CHF at 0.99 over the next three months as sentiment in financial markets keeps improving.”

Mataf.net analysts point to the next short-term resistances for the USD/CHF at 0.9746, onto 0.9796, and finally 0.9842. Alternatively, a paring of recent gains will move the pair towards supports at 0.9650, then 0.9604, ahead of 0.9554.