USD/CHF rises to 1.0120 after ECB, up for the second day in a row

The Swiss franc weakened in the market after the European Central Bank decision and Mario Draghi’s press conference. USD/CHF climbed from 1.0055 and peaked at 1.0120 after the beginning of the American session. 

During the last hour, the pair pulled back, falling below 1.0100. It was trading at 1.0090, up 30 pips for the day. For the first time since late December, USD/CHF is gaining ground for two days in a row. 

From Monday’s low, slightly below parity, the pair has risen more than a hundred pips. The intraday tone still shows some bullish momentum but on a wider perspective, the trend continues to favor the Swiss franc. A decline back below 1.0050 would add pressure, exposing again the 1.0000 handle. 

EUR and CHF weak on Draghi 

As expected, the ECB left interests rate and the purchase program unchanged. Afterward, Draghi delivered an unexpected dovish message. He said that the uptrend in the core inflation remains unconvincing and diminished the recent rise in inflation, arguing that it was because of energy prices. 

Draghi’s affirmations pushed the euro to the downside in the market and also hit the Swiss franc. EUR/CHF remained relatively steady, moving between 1.0700 and 1.0730.