Forex Flash: EUR/CHF squeezed higher - UBS

FXstreet.com (San Francisco) - EURCHF jumped on Thursday above 1.2040 although "the reason for the move remains unclear", according to the UBS analyst team. "Most likely a wave of broad euro buying ahead of Thursday's ECB meeting led to an appreciation which became more remarkable versus the Swiss franc than versus any other currency", they say.

"We also note that five to ten year German bond yields have risen slightly over the last two weeks, giving the euro a slight rate advantage over the Swiss franc", UBS explains. "The result on the ECB meeting on Thursday remains crucial".