USD/CHF falls sharply as Fed stands pat

USD/CHF fell sharply  and hit fresh weekly lows as the dollar weakened broadly following the Federal Reserve decision to keep rates unchanged at its June meeting.

USD/CHF lost around 70 pips as the knee jerk reaction and hit a low of 0.9590, before recovering slightly. At time of writing, the pair is trading at 0.9612, still down 0.21% on the day.

Fed statement

The Fed decided to keep the target for the fed funds unchanged at 0.25-0.50% in June. The FOMC noted that labor market has slowed despite economic pickup and reiterated the economy will warrant only gradual increases in the federal funds rate.