Global macro overview for 15/12/2016:
The Swiss National Bank has decided to leave the LIBOR rate unchanged at the negative level of -0.75% today. Moreover, the LIBOR 3-month lower target range has been unchanged as well at the level of -1.25% and LIBOR 3-month upper target range has been unchanged at the level of -0.25%. At the press conference, SNB Chairman Thomas Jordan said the Swiss situation is different than the US situation regarding interest rates and it is still too early to speak of a turning point for interest rates across all cycles. A lot depends on developments in the US economy and the FED monetary policy. In conclusion, nothing new from Jordan as this rhetoric had been heard before, but the SNB seems to be more dependent on the FED than the ECB than previously thought.
Let’s now take a look at the USD/CHF technical picture in the daily time frame. The bulls are in full control over this market as they try to test the technical resistance at the level of 1.0329. The price trades above all of the moving averages and the next support is seen at the level of 1.0256.
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