Jakarta, GIC Trade – In its monetary policy statement, the Swiss National Bank (SNB) highlighted persistent risks to the Swiss real estate sector while noting that further tightening could occur.
 
It cannot be ruled out that additional increases in the SNB policy rate will be needed to ensure price stability in the medium term.
 
The Swiss National Bank (SNB) has raised its key interest rate by 50 basis points and warned that further hikes may be necessary, ignoring risks to the financial sector and economic growth from the collapse of Credit Suisse last week.
 
While the bank's announcement comes less than a week after the SNB, regulator FINMA, and the federal government forced through the sale of Credit Suisse to UBS, aiming to halt an irregular collapse that would destroy its international reputation.
 
The SNB gave only one brief paragraph in its statement for the episode, saying briefly that "The measures announced over the weekend by the federal government, FINMA and the SNB have halted the crisis. The SNB provides large amounts of liquidity assistance in Swiss francs and foreign currencies. This loan is guaranteed by collateral and is subject to interest."
Meanwhile, Swiss inflation reached 3.4% in February, "mainly due to higher prices of electricity, tourism services and food," the SNB said. "However," he added, "price increases are now broad-based." The SNB expects inflation to return to more than 2% by the end of 2025, while expecting 1% growth this year.
 
The franc rose against the dollar after the SNB's statement, with expectations that banks will find it easier than the Federal Reserve to raise interest rates further, given greater concerns about financial stability in the US.
 
Fundamentally, a 50 bps rate hike by the SNB and a hawkish stance have strengthened the Swiss franc. Then how technically, see the following analysis:
 
Technical Analysis
 


USD/CHF on the 1-hour period moved down, trying to touch the 0.91177 support area towards the next support level at 0.90946. Meanwhile, to turn the bias into bullish, USD/CHF needs to break through the resistance area at 0.91663 to the next resistance level at 0.91913.
 
Referring to the CCI indicator which is already in the oversold area, USD/CHF has the opportunity to rebound trying to break through the resistance level of 0.91663.
Forex Analysis Today is a fundamental and technical view used by the author, not a suggestion or a solicitation. To get more information click on the image below.