FxWirePro: EUR/CHF trades muted, SNB raises rates by 50 bps as widely expected

Chart - Courtesy Trading View 

EUR/CHF was trading largely unchanged at 0.9869 at around 10:20 GMT, with a session high at 0.9893 and low at 0.9837.

The Swiss National Bank (SNB) at the December policy meeting, raised its benchmark sight deposit interest rate by 50 basis points (bps) to 1.0% from 0.50% previous, as widely expected.

This was the central bank's third consecutive rate increase, summing up to a total of 175 bps of lift-off in 2022. 

The central bank reiterated that it will remain active in foreign exchange markets as necessary, a tailwind for the EUR/CHF pair.

Traders keenly await the latest monetary policy update by the European Central Bank (ECB) and refrain from placing any major bets.

The ECB is set to raise interest rates for the fourth time in a row, but at a slower pace than at the last two meetings. Market are pricing in a 50 bps lift-off amid signs of easing inflationary pressures.

ECB President Christine Lagarde's remarks at the post-meeting press conference will be closely watched for further direction. 

Technical bias for the pair is neutral. Price action trapped between major moving averages. Breakout will provide clear directional bias.