Forex Flash: Swiss Franc on the move following report – UBS

FXstreet.com (Barcelona) - The Swiss franc weakened after Bloomberg reported that a custodian bank plans to impose negative interest rates on CHF and DKK deposits from November 1. According to Research Analyst Chris Walker at UBS, "We doubt the news will have a lasting weakening effect on the Swiss franc, however, given that interest rates have been negative in the interbank market for months, and those who wish to hold Swiss franc deposits for safe haven reasons are unlikely to be deterred by a 25 bp penalty."

Indeed, "EURCHF had retraced most of the move at the time of writing.
As such, we maintain a neutral rating on the EURCHF with calculated resistance at 1.2185. Conversely, support lies at 1.2079 followed by 1.2035." Walker adds.