USDCHF Analysis: December 21, 2023

USDCHF Analysis
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USDCHF Analysis – The Swiss franc rose past 0.87 per USD, its highest since late July. This was due to a temporary drop in the dollar’s value and ongoing support from the Swiss National Bank. Soft projections from Federal Reserve members about rate cuts next year put pressure on the US dollar.

Meanwhile, the Swiss National Bank has been boosting the franc by selling its foreign currency reserves. This helps manage the impact of unstable commodity prices and keeps import inflation in check. It’s one of the bank’s main strategies to deal with high price growth in Europe. Recent data shows the SNB’s foreign exchange reserves dropped for the sixth month in a row, hitting a seven-year low in November.

On the policy side, the central bank kept its key rate the same last week. They noted that inflation risks are still present, even though there’s a slowdown in the country’s CPI.

USDCHF Analysis

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