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15 Jan 2015
EUR/CHF back to 1.0400
FXStreet (Edinburgh) - Quite violent moves in EUR/CHF following the SNB decision earlier on, now hovering over 1.0415/10 after dropping to the 0.8600 neighbourhood in the aftermath of the meeting.
EUR/CHF looking to stabilize
The cross is now attempting to consolidate the recent move around the 1.0400 region, while market participants keep digesting the SNB decision. Recall that the Swiss National Bank took the 3-month LIBOR target to between -0.25% and -1.25%, lowered the deposit rate to -0.75% and abandoned the cap vs. the euro, which was originally set at 1.20 back to early September 2011. Following the SNB unexpected decision, Senior Global Strategist at TD Securities Jacqui Douglas commented “with a EUR depreciation trend likely to continue and central banks more comfortable with negative rates than when the floor was put in place, the SNB has felt it appropriate to return to more normal policies”.
EUR/CHF significant levels
At the moment the cross is losing 13.39% at 1.0408 with the next support at 0.8599 (low Jan.15) ahead of 0.8052 (low Jan.15 2001) and then 0.8000 (psychological level). On the upside, a break above the psychological mark at 1.2000 would aim for 1.2010 (high Jan.15) and finally 1.2039 (2015 high Jan.1).
EUR/CHF looking to stabilize
The cross is now attempting to consolidate the recent move around the 1.0400 region, while market participants keep digesting the SNB decision. Recall that the Swiss National Bank took the 3-month LIBOR target to between -0.25% and -1.25%, lowered the deposit rate to -0.75% and abandoned the cap vs. the euro, which was originally set at 1.20 back to early September 2011. Following the SNB unexpected decision, Senior Global Strategist at TD Securities Jacqui Douglas commented “with a EUR depreciation trend likely to continue and central banks more comfortable with negative rates than when the floor was put in place, the SNB has felt it appropriate to return to more normal policies”.
EUR/CHF significant levels
At the moment the cross is losing 13.39% at 1.0408 with the next support at 0.8599 (low Jan.15) ahead of 0.8052 (low Jan.15 2001) and then 0.8000 (psychological level). On the upside, a break above the psychological mark at 1.2000 would aim for 1.2010 (high Jan.15) and finally 1.2039 (2015 high Jan.1).