Forex: EUR/CHF retracing from highs, around 1.2150
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EUR/CHF
FXstreet.com (Barcelona) - The Swiss franc continues to depreciate against the single currency on Wednesday, following the rumours that Swiss banks would start to apply negative interest rate to deposits in Swiss francs.
Assessing these last rumours, Geoffrey Yu, Strategist at UBS, comments "& nothing much has changed in practice considering Swiss rates have faced negative implied yields for several quarters. It was only going to be matter of time before banks actually start passing dome costs down. For the SNB however, the bigger concern is not just the inflows themselves but the fact that source funds are probably in euros - leading to obvious FX implications".
At the moment the pair is up 0.14% at 1.2148 facing the next resistance at 1.2168 (high Sep.18) ahead of 1.2184 (high Sep.17) and finally 1.2199 (high 2012, Jan.4/6).
On the downside, a decline beyond 1.2112 (Upper Bollinger) would allow 1.2067 (MA55d) en route to 1.2054 (MA21d).
Assessing these last rumours, Geoffrey Yu, Strategist at UBS, comments "& nothing much has changed in practice considering Swiss rates have faced negative implied yields for several quarters. It was only going to be matter of time before banks actually start passing dome costs down. For the SNB however, the bigger concern is not just the inflows themselves but the fact that source funds are probably in euros - leading to obvious FX implications".
At the moment the pair is up 0.14% at 1.2148 facing the next resistance at 1.2168 (high Sep.18) ahead of 1.2184 (high Sep.17) and finally 1.2199 (high 2012, Jan.4/6).
On the downside, a decline beyond 1.2112 (Upper Bollinger) would allow 1.2067 (MA55d) en route to 1.2054 (MA21d).
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