Forex: EUR/CHF in session highs, eyes 1.2130
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EUR/CHF
FXstreet.com (Barcelona) - The Swiss franc is accelerating its depreciation against the single currency on Tuesday, navigating in the proximities of 1.2130 as risk aversion continues to shrink, intensifying the outflows from the safe havens.
Ahead of the SNB's quarterly board meeting due on Thursday, M.Mohi uddin, Managing Director of Foreign Exchange Strategy at UBS, expects the central bank to leave the minimum exchange rate intact at CHF 1.20 per euro, adding "News that a large Swiss bank was going to start charging clients for leaving balances in Swiss francs did lift EURCHF back above 1.21 temporarily. But without the SNB adopting negative deposit rates, we see little to push EURCHF sharply higher even if the SNB confirms it has not plans to abandon its 1.20 floor target for the foreseeable future".
The pair now advances 0.37% at 1.2125 with the next resistance at 1.2129 (high Dec.6) followed by 1.2168 (high Dec.5) and 1.2184 (high Sep.17).
On the flip side, a breakdown of 1.2077 (low Dec.11) would aim to 1.2061 (MA21d) en route to 1.2051 (low Dec.7)
Ahead of the SNB's quarterly board meeting due on Thursday, M.Mohi uddin, Managing Director of Foreign Exchange Strategy at UBS, expects the central bank to leave the minimum exchange rate intact at CHF 1.20 per euro, adding "News that a large Swiss bank was going to start charging clients for leaving balances in Swiss francs did lift EURCHF back above 1.21 temporarily. But without the SNB adopting negative deposit rates, we see little to push EURCHF sharply higher even if the SNB confirms it has not plans to abandon its 1.20 floor target for the foreseeable future".
The pair now advances 0.37% at 1.2125 with the next resistance at 1.2129 (high Dec.6) followed by 1.2168 (high Dec.5) and 1.2184 (high Sep.17).
On the flip side, a breakdown of 1.2077 (low Dec.11) would aim to 1.2061 (MA21d) en route to 1.2051 (low Dec.7)
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