19 Jan 2015
EUR/CHF breaches parity
FXStreet (Edinburgh) - The common currency is now trading in a narrow range vs. the Swiss franc on Monday, with EUR/CHF hovering over 0.9970/75 so far.
EUR/CHF still volatile
Markets are still looking for a ‘fair value’ for the Swiss franc amidst increasing volatility in the CHF-crosses, after the unprecedented SNB decision to abandon the cap vs. the euro in last week’s meeting. According to Emile Cardon, CFA at Rabobank, “we expect the SNB to try to stabilize EUR/CHF around 1 and will not tolerate another drop below the 0.90 area”.
In the data space, Producer and Import Prices in Switzerland declines 2.1% on a yearly basis and 0.4% inter-month from previous drops of 1.6% and 0.7%, respectively.
EUR/USD relevant levels
The cross is now advancing 0.63% at 0.9971 with the next resistance at 1.0250 (hourly high Jan.16) followed by 1.0651 (high Jan.15) and then 1.1000 (psychological level). On the other hand, a breakdown of psychological levels at 0.9900 and 0.99800 would expose 0.9751 (low Jan.16).
EUR/CHF still volatile
Markets are still looking for a ‘fair value’ for the Swiss franc amidst increasing volatility in the CHF-crosses, after the unprecedented SNB decision to abandon the cap vs. the euro in last week’s meeting. According to Emile Cardon, CFA at Rabobank, “we expect the SNB to try to stabilize EUR/CHF around 1 and will not tolerate another drop below the 0.90 area”.
In the data space, Producer and Import Prices in Switzerland declines 2.1% on a yearly basis and 0.4% inter-month from previous drops of 1.6% and 0.7%, respectively.
EUR/USD relevant levels
The cross is now advancing 0.63% at 0.9971 with the next resistance at 1.0250 (hourly high Jan.16) followed by 1.0651 (high Jan.15) and then 1.1000 (psychological level). On the other hand, a breakdown of psychological levels at 0.9900 and 0.99800 would expose 0.9751 (low Jan.16).