USD/CHF Surges on Interest Rate Differential
The USD/CHF currency pair has seen a rise in value against the Swiss franc on Thursday, September 11th. The US dollar has rallied during the trading session, spiking towards the 0.8150 level. This level has been a barrier over the last couple of months but is being driven by the interest rate differential favoring the US dollar.
According to Christopher Lewis, a technical analyst at DailyForex, 'the one thing that I think of first is the interest rate differential that favors the U.S. dollar.' The Swiss National Bank has kept rates at 0%, while the US has seen rising rates.
Lewis suggests buying this pair on a CPI reading over 0.2% in America, with a 100-pip stop. If the market breaks above the 0.8150 level, it could open up a move to the 0.82 level. Conversely, if it breaks down below the 50-day EMA, it's possible that the market could drop down to the 200-day EMA just above the 0.80 level.