Swiss Franc Rises on the Back of Dollar Woes

The Swiss Franc (CHF) surged against the declining U.S. Dollar (USD) on Thursday, amid a broad decline by the greenback that followed the release of the Federal Reserve policy statement.

The Fed vowed to maintain its current accommodative policy, keeping interest rates and asset purchases unchanged, and expecting to hold on to this policy until substantial further progress is made in the labor markets and expecting the surge in inflation to eventually ease in the coming months.

The USD/CHF pair dropped by about 0.43% on Thursday, reaching 0.9062, and breaking below its 200 simple moving average (SMA), and maintaining a declining streak for the fourth consecutive session and settling at its lowest closing level in about six weeks.

Moreover, a weaker than expected GDP reading in the U.S. and concerns over recovery with the spread of the Coronavirus Delta variant provided support for the safe-haven CHF against the Euro (EUR) for the second consecutive session, despite European stocks hitting a new all-time high.

The EUR/CHF declined for fourth day in a row and reached 1.0769.