During European trades the euro and Swiss franc have renewed their session maximums against the USD. The euro/dollar followed the franc to 1.1337. Demand for the franc increased after the SNB met and decided to keep their base rate at -0.75%. The price range of the three-month Libor rate was left at -1.25% to -0.25%.
According to the Swiss National Bank, the franc is overvalued. When necessary, the bank is ready to step in and make an intervention to weaken the national currency.
The pound/dollar was around the 1.5500 a few hours ago after the publication of ambiguous retail sales data for the UK. In the last hour, buyers have reset yesterday’s 1.5527 maximum to 1.5548.
The UK’s August retail sales index stood at 0.2% MOM and 3.7% YOY (forecasted: 0.2% MOM, 3.8% YOY, previous: 0.1% MOM, 4.1% YOY). The monthly indicator met expectation, whereas the yearly was down.
The USD is experiencing negative pressure before the results of the FOMC meeting are out. According to Bloomberg, market opinion is divided: 72% of analysts expect the Fed to leave the rate unchanged, with the remainder believing the rate will be increased by 0.25%. The market reaction will be instantaneous to any decision. As such, to avoid risks, it’s better to be out of the market when it hits 21:00 EET.