The Swiss Franc is continuing the downward momentum that started last week after the decision by the Swiss National Bank. In the monetary policy meeting, the central bank said that while the economy was doing well, the accommodative monetary policy was likely to continue for the foreseeable future. This policy has led to the economy to experience major growth, mostly caused by the improving industrial growth that has been fuelled by external demand.
Switzerland is a relatively small country with a population of more than 8 million people and a GDP of $659 billion people. It is known as one of the safest country in the world because of the neutral positions on key issues. It is also known for its financial industry which is dominated by banks like UBS and Credit Suisse. As a safe haven, the country is home to billions of dollars that have been stored there by the rich and the powerful from around the world. Its industrial prowess is also well-known, with companies like Novartis, Nestle, and Roche dominating their industries.
Last week, the USD/CHF pair declined to a low of 0.9545, which was the lowest level since April this year. On Monday, the pair opened at the low levels of 0.9600, which is between the lower and the middle Bollinger Band. The RSI is currently at 37 and pointed lower while the momentum too is headed lower. This week, the Fed decision will determine the direction of the pair.
