USD/CHF pulls back amid improved sentiment on Credit Suisse front

  • USD/CHF retreats to 0.9250 amid broad-based US Dollar weakness and softer US Treasury yields.
  • Swiss National Bank’s decisive action alleviates Credit Suisse’s liquidity concerns.
  • Market uncertainty looms as questions on the liquidity front remain unresolved.

USD/CHF retreated from the 0.9300 mark in early Asian trading hours on Friday. The broad-based US Dollar weakness has led the pair to erase some of the previous day’s gains and head toward Thursday’s low at 0.9230. Improved risk appetite has pushed the US Dollar lower amid slightly softer US Treasury yields.

The Swiss Franc has strengthened due to an improvement in the situation regarding the troubled Swiss bank Credit Suisse. 

The Swiss National Bank (SNB) quickly stepped in and provided support for Credit Suisse after pressure from international counterparts, according to some reports. Thereafter, SNB showed a willingness to provide a covered loan facility to Credit Suisse to help them escape the liquidity trap. 

Credit Suisse said it would borrow up to 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank. The bank called the loan a “decisive action to preemptively strengthen its liquidity.”

On the United States front, we have seen a cumulative effort to revive First National Bank by key market players like JPMorgan, Citibank, Bank of America, and many others, which provided a pool of liquidity totaling around $30 billion.

The key question still remains unresolved, as the market doesn’t know how many chapters are yet to be disclosed on the liquidity front. USD/CHF could become volatile if we see some escalation of liquidity problems.

Levels to watch


Today last price0.9263
Today Daily Change-0.0031
Today Daily Change %-0.33
Today daily open0.9294
Daily SMA200.9318
Daily SMA500.9259
Daily SMA1000.9373
Daily SMA2000.955
Previous Daily High0.9342
Previous Daily Low0.923
Previous Weekly High0.9439
Previous Weekly Low0.9175
Previous Monthly High0.9429
Previous Monthly Low0.9059
Daily Fibonacci 38.2%0.9273
Daily Fibonacci 61.8%0.9299
Daily Pivot Point S10.9235
Daily Pivot Point S20.9176
Daily Pivot Point S30.9123
Daily Pivot Point R10.9347
Daily Pivot Point R20.9401
Daily Pivot Point R30.946
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