Forex
USD/CHF Surges to 16-Month High on SNB Decision
The USD/CHF pair climbed to its highest level in 16 months after the Swiss National Bank kept its policy rate at 0%.
This decision left the Swiss Franc weaker, as markets priced in additional Federal Reserve tightening and a firmer US Dollar.
The SNB's decision was not surprising, given that it reiterated its commitment to keeping inflation within its target of less than 2% per annum.
The bank also pushed back against market expectations of 50-75 basis points of hikes over the next 12 months, stating that policy remains appropriate.