16 Jan 2015
EUR/USD aims to 1.0200
FXStreet (Edinburgh) - The Swiss franc is now attempting to regain the 1.0200 handle vs. the euro on Friday, with EUR/CHF hovering over the 1.0190/95 band.
EUR/CHF no reaction after data
The cross has practically ignored the results from the retail sales in the Alpine economy, contracting at an annual pace of 1.2% during the month of November. Traders and markets in general continue to re-accommodate after the SNB decision to abandon the minimum exchange rate vs. the euro announced in yesterday’s meeting, with the cross looking to stabilize around a fair value.
In light of the next key ECB meeting next week, Senior Analyst at Danske Bank Signe Roed-Frederiksen argued “SNB will have a hard time justifying continued CHF strength as deflation remains an entrenched issue for the Swiss economy. Crucially, however, if we are right in expecting the ECB to deliver more than the market expects on QE next week, this suggests downside to EUR/CHF in the near term”.
EUR/CHF important levels
At the moment the cross is up 0.90% at 1.0187 with the next hurdle at 1.0651 (recovery high Jan.15) ahead of 1.200 (psychological level) and then 1.2010 (high Jan.15). On the other hand, a breakdown of the psychological mark at 1.0000 would target 0.8599 (low Jan.15) and then 0.8000 (psychological level).
EUR/CHF no reaction after data
The cross has practically ignored the results from the retail sales in the Alpine economy, contracting at an annual pace of 1.2% during the month of November. Traders and markets in general continue to re-accommodate after the SNB decision to abandon the minimum exchange rate vs. the euro announced in yesterday’s meeting, with the cross looking to stabilize around a fair value.
In light of the next key ECB meeting next week, Senior Analyst at Danske Bank Signe Roed-Frederiksen argued “SNB will have a hard time justifying continued CHF strength as deflation remains an entrenched issue for the Swiss economy. Crucially, however, if we are right in expecting the ECB to deliver more than the market expects on QE next week, this suggests downside to EUR/CHF in the near term”.
EUR/CHF important levels
At the moment the cross is up 0.90% at 1.0187 with the next hurdle at 1.0651 (recovery high Jan.15) ahead of 1.200 (psychological level) and then 1.2010 (high Jan.15). On the other hand, a breakdown of the psychological mark at 1.0000 would target 0.8599 (low Jan.15) and then 0.8000 (psychological level).