The USD/CHF pair jumped to 0.9927, the highest level since Monday after the announcement. Shortly afterward retreat erasing most of the gains and moved back toward 0.9900. As of writing, trades at 0.9910, marginally higher for the day.
The US central bank lowered the key rate for the first time in ten years. It justified the move by the implications of global developments for the US economic outlook and muted inflation pressures. The decision was not unanimous: two members voted for no rate cut.
Now the CME Group’s Fed-Watch Tool’s shows a probability of one more 25 basis points rate cut in September up to 75% from 55% seen yesterday.
USD/CHF SHORT (Sell)
Enter at: 0.99690