The dollar strengthened immediately after the publication of the decision. The yield on 10-year US Treasury bonds also continued to rise, hitting 2.24% yesterday, a new almost 3-year high after the Federal Reserve (for the first time since 2018) raised the key interest rate (prior to this decision by the Fed, the yield of 10-year bonds was 2.19%).
However, subsequently the dollar and US bond yields started to decline, and during today's Asian trading session, the dollar also remained under pressure. Economists and market participants are now evaluating how effective the Fed will be in dealing with inflation, which has reached its highs in the past 40 years. The growing readiness of investors to buy risky, but profitable, assets against the backdrop of ongoing negotiations between representatives of Russia and Ukraine also contributes to weakening the demand for the dollar as a defensive asset.
This week, market participants will also evaluate the results of the meetings of the central banks of the UK and Japan, and next - China and Switzerland. If the Bank of England (its meeting ends today at 12:00 GMT) is expected by market participants to raise interest rates, then the Bank of Japan, the People's Bank of China and the Swiss National Bank will probably not change their monetary policies. One way or another, the dollar and the threat of foreign exchange interventions from the SNB continue to play a dominant role in determining the dynamics of USD/CHF.
In the current situation, the main scenario for further growth of USD/CHF is preferable. However, also - after a confirmed breakdown and consolidation in the zone above the resistance level of 0.9410.
Support levels: 0.9400, 0.9360, 0.9338, 0.9322, 0.9262, 0.9205, 0.9160, 0.9107, 0.9085
Resistance levels: 0.9410, 0.9460, 0.9495, 0.9670, 1.0000, 1.0235, 1.0480
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