16 Jan 2015
EUR/CHF in recovery mode, eyes 1.0000
FXStreet (Edinburgh) - The Swiss franc is now giving away some of the earlier gains, pushing EUR/CHF back to the vicinity of 1.0000.
EUR/CHF closes a turbulent week
The cross is back around the parity level after falling as low as 0.9740 during the evening in Europe. High volatility is still the name of the game for the CHF, at least until investors find a ‘fair value’ for the Alpine currency after yesterday SNB unexpected move.
In the middle of rumours regarding why the Swiss National Bank removed the peg vs. the euro, strategists at Rabobank suggested “The central bank probably realized that any potential future purchases would do more harm than good. Indeed, the ECB is ready to announce QE on 22 January or 5 March and the amounts the SNB would have to buy could become disproportional”.
EUR/CHF important levels
At the moment the cross is down 1.30% at 0.9963 and a breakdown of the psychological mark at 1 0.9900 would expose 0.9800. On the upside, the initial hurdle lines up at 1.000 (psychological level) ahead of 1.0651 (recovery high Jan.15) and finally 1.0700 (psychological level).
EUR/CHF closes a turbulent week
The cross is back around the parity level after falling as low as 0.9740 during the evening in Europe. High volatility is still the name of the game for the CHF, at least until investors find a ‘fair value’ for the Alpine currency after yesterday SNB unexpected move.
In the middle of rumours regarding why the Swiss National Bank removed the peg vs. the euro, strategists at Rabobank suggested “The central bank probably realized that any potential future purchases would do more harm than good. Indeed, the ECB is ready to announce QE on 22 January or 5 March and the amounts the SNB would have to buy could become disproportional”.
EUR/CHF important levels
At the moment the cross is down 1.30% at 0.9963 and a breakdown of the psychological mark at 1 0.9900 would expose 0.9800. On the upside, the initial hurdle lines up at 1.000 (psychological level) ahead of 1.0651 (recovery high Jan.15) and finally 1.0700 (psychological level).