USD/CHF rises to 3-day highs after FOMC decision

The US dollar turned to the upside after the decision of the Federal Reserve and rose further with Yellen’s testimony. The US central bank rose interest rates by 25bp as expected. USD/CHF extended the recovery from 6-day lows and rose above 0.9700. The pair was hovering around 0.9660 and now is trading slightly below 0.9720.

The Fed rose rates as expected to 1.00% - 1.25%. One member, Neel Kashkari, voted against the decision. The central bank presented a document regarding how it plans to unwind its balance sheet. Yellen is reading a statement and then she will answer questions. 

Fed raises rates by 25 bps; second hike of 2017

Levels to watch 

The pair broke the range of the previous two days, between 0.9705 and 0.9660. A consolidation above 0.9710 would add momentum to the US dollar for a recovery. The next resistance could be seen at 0.9725/30 (June 9 high) and 0.9745.

On the downside, a consolidation below 0.9660 would weaken the greenback while under 0.9640, June lows around 0.9610/15 would be exposed. 

FED Rate Decision Live Coverage