Forex: EUR/CHF hovering below 1.2400
Forex pairs in this Article »
EUR/CHF
FXstreet.com (Córdoba) - The euro has continued to rise against the franc on Tuesday, extending gains into a fourth consecutive day, in a move that appears to have caught most investors by surprise.
Having risen over 300 pips within the last week, EURCHF broke above the 1.2400 mark and recently printed a fresh 13-month high of 1.2411. The pair has eased from highs and it is currently trading at the 1.2375 area, up 0.3% on the day.
"Fundamental flows (e.g. Switzerland's large current account surplus) remain franc supportive but the reduction in euro tail-risks has opened the window for a potential significant franc depreciation", says the Danske Bank team. "A lot of money went into Switzerland during 2012 in response to increased global and European uncertainty and there is little evidence that these flows have been fully unwound. This leaves potential for a bigger move higher in EURCHF".
Having risen over 300 pips within the last week, EURCHF broke above the 1.2400 mark and recently printed a fresh 13-month high of 1.2411. The pair has eased from highs and it is currently trading at the 1.2375 area, up 0.3% on the day.
"Fundamental flows (e.g. Switzerland's large current account surplus) remain franc supportive but the reduction in euro tail-risks has opened the window for a potential significant franc depreciation", says the Danske Bank team. "A lot of money went into Switzerland during 2012 in response to increased global and European uncertainty and there is little evidence that these flows have been fully unwound. This leaves potential for a bigger move higher in EURCHF".
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