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11 Feb 2013
Forex: EUR/CHF in session highs around 1.2330
The Swiss franc is rapidly losing ground against its European counterpart on Monday, pushing the cross from the area around 1.2285 to session highs at 1.2333
M.Mohi-uddin, Director of FX Strategy at UBS commented, “we do not expect the SNB to 'fine-tune' its floor for EURCHF by raising it to say 1.25 if the market pushes the cross higher. Last, the central bank is also unlikely to start selling its $460bn of foreign exchange reserves if EURCHF rises. The SNB is likely to maintain a cautious stance about developments in Europe. Prematurely changing its exchange rate policy may result in sharp, renewed inflows into the franc”.
EUR/CHF is now advancing 0.38% at 1.2323 with the next resistance at 1.2378 (MA21d) followed by 1.2512 (Upper Bollinger) and then 1.2515 (high Jan.30).
On the flip side, a breach of 1.2257 (low Feb.5) would open the door to 1.2245 (Lower Bollinger) and then 1.2205 (MA55d).
M.Mohi-uddin, Director of FX Strategy at UBS commented, “we do not expect the SNB to 'fine-tune' its floor for EURCHF by raising it to say 1.25 if the market pushes the cross higher. Last, the central bank is also unlikely to start selling its $460bn of foreign exchange reserves if EURCHF rises. The SNB is likely to maintain a cautious stance about developments in Europe. Prematurely changing its exchange rate policy may result in sharp, renewed inflows into the franc”.
EUR/CHF is now advancing 0.38% at 1.2323 with the next resistance at 1.2378 (MA21d) followed by 1.2512 (Upper Bollinger) and then 1.2515 (high Jan.30).
On the flip side, a breach of 1.2257 (low Feb.5) would open the door to 1.2245 (Lower Bollinger) and then 1.2205 (MA55d).