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20 Mar 2014
EUR/CHF flirting with 1.2200
FXStreet (Edinburgh) - The Swiss franc is now depreciating against the single currency, lifting the EUR/CHF to the boundaries of 1.2200 the figure.
EUR/CHF stronger after SNB meeting
The SNB had its monetary policy meeting today, leaving no room for surprises and keeping the 1.20 minimum peg vs. the EUR intact, as well as its rate target at 0%-0.25%. The cross is now climbing to fresh 2-week highs around the 1.2200 handle, advancing for the fifth consecutive session after bottoming near 1.2120. “All in all, the SNB will continue maintaining a zero interest rate policy while fighting the domestic imbalances that this creates, and it will continue to ensure a minimum exchange rate under the CHF, even if it now appears much more relaxed about the exchange rate than last year. We currently expect no change in the exchange rate policy before late 2016 and in the interest rate policy before early 2016”, commented Julien Manceaux, Analyst at ING Bank NV.
EUR/CHF levels to watch
The cross is now up 0.12% at 1.2196 with the next hurdle at 1.2202 (high Mar.19) ahead of 1.2215 (high Mar.7) and then 1.2227 (high Feb.19). On the flip side, a breakdown of 1.2150 (low Mar.18) would open the door to 1.2130 (low Mar.17) and then 1.2123 (low Mar.14).
EUR/CHF stronger after SNB meeting
The SNB had its monetary policy meeting today, leaving no room for surprises and keeping the 1.20 minimum peg vs. the EUR intact, as well as its rate target at 0%-0.25%. The cross is now climbing to fresh 2-week highs around the 1.2200 handle, advancing for the fifth consecutive session after bottoming near 1.2120. “All in all, the SNB will continue maintaining a zero interest rate policy while fighting the domestic imbalances that this creates, and it will continue to ensure a minimum exchange rate under the CHF, even if it now appears much more relaxed about the exchange rate than last year. We currently expect no change in the exchange rate policy before late 2016 and in the interest rate policy before early 2016”, commented Julien Manceaux, Analyst at ING Bank NV.
EUR/CHF levels to watch
The cross is now up 0.12% at 1.2196 with the next hurdle at 1.2202 (high Mar.19) ahead of 1.2215 (high Mar.7) and then 1.2227 (high Feb.19). On the flip side, a breakdown of 1.2150 (low Mar.18) would open the door to 1.2130 (low Mar.17) and then 1.2123 (low Mar.14).