All eyes are on whether the Swiss franc will react to the SNB’s policy rate announcement

All eyes are on whether the Swiss franc will react to the SNB’s policy rate announcement

15.12.2022

In the previous day’s U.S. currency trading, the dollar rose against the yen despite the FOMC raising rates by 0.5 percentage points as expected and Fed Chair Powell refraining from making overly hawkish remarks during his press conference.The USD/JPY pair rose to 135.972. Although it surged to the 75-period moving average (MA) on the hourly chart, the rally did not extend further, and the pair has been trading sideways in that price range during today’s Asian session. We will closely monitor whether the U.S. dollar gains momentum following the release of economic indicators during U.S. trading hours.

Ahead of today’s SNB policy rate announcement, the Swiss franc is rising against the yen. The CHF/JPY pair climbed from 145.219 to 146.727. It rebounded off the 200-period simple moving average (SMA) on the hourly chart as a support level. However, on the daily chart, it is trading just below the 20-period moving average (MA), and with the direction of the market still unclear, we will be watching closely to see if today’s SNB policy rate announcement triggers any significant price movements.

Today’s schedule includes Turkish home sales at 4:00 PM, the SNB policy rate and statement in Switzerland at 5:30 PM, a press conference by SNB Governor Jordan in Switzerland at 6:00 PM, the BOE policy rate and statement in the UK at 9:00 PM, and at 10:15 PM, theECB policy rate and statement, and Canadian housing starts; at 10:30 PM, U.S. initial jobless claims, U.S. retail sales, and the U.S. New York Fed Manufacturing Index; at 10:45 PM, a press conference by ECB President Lagarde; at 11:15 PM, U.S. industrial production and capacity utilization; and at 12:30 AM, U.S. weekly natural gas inventories.We will be watching to see if the Swiss franc reacts to the SNB’s policy rate announcement.