U.S. Treasury currency report
The U.S. Treasury currency report is out saying that:
- no major trading partners manipulated exchange rates to prevent balance of payment adjustments, or gain unfair advantage in trade under 1988 law
- Vietnam Taiwan, continue to meet all three manipulation criteria for enhanced engagement under 2015 law
- U.S. Treasury reached agreement with Vietnam in July to address concerns
- Switzerland no longer meets all three criteria for enhanced analysi
- China's failure to publish foreign exchange intervention data lack of transparency make it an outlier among major economies
- treasury has raised concerns about China's practices with Chinese counterparts
- closely monitoring China's data and policies, concerned about persistent very large and persistent bilateral trade surplus
- trade surplus threshold shifted to $15 billion goods and services surplus from $20 billion goods surplus
Meanwhile, the SNB it is out saying that the
- it takes note of U.S. Treasury report into currency manipulation and its assessment of the Switzerland
- central bank remains in contact with the US authorities to explain Switzerland's economic situation and monetary policy
The USDCHF moved lower on the back of the headline jobs report, but has bounced back higher.
Technically the price moved below its 100 day moving average at 0.91793 after the report, but stalled near the low from Wednesday's trade at 0.91688.
The price has moved back toward its 100 hour moving average at 0.9206.
