2 Feb 2015
Swiss Franc weakens on talks of the SNB’s unofficial Euro target
FXStreet (Mumbai) - The Swiss Franc declined against the Euro after a Swiss newspaper reported on Sunday that the Swiss National Bank (SNB) is said to have adopted an unofficial EUR/CHF target.
Corridor from 1.05 francs to 1.10 francs
The Schweiz am Sonntag newspaper said that the SNB was operating “a kind of minimum exchange rate against the Euro.” The newspaper stated that the Bank is said to have adopted a “corridor” from 1.05 francs to 1.10 francs in EUR/CHF exchange rate. However, the central bank spokesperson declined to comment on the story.
Nevertheless, the Swiss Franc has come under pressure, trading 1.28% lower at 1.0521 per Euro. The SNB scraped its four year old EUR/CHF floor at 1.2 in the last month, which led to a surge in the value of Franc and turmoil in the FX markets.
EUR/CHF Technical Levels
The pair has an immediate resistance at 1.0542 (weekly 5-MA). On the flip side, a break below the immediate support on the hourly chart at 1.0497 shall open doors for a re-test of 1.0450 levels.
Corridor from 1.05 francs to 1.10 francs
The Schweiz am Sonntag newspaper said that the SNB was operating “a kind of minimum exchange rate against the Euro.” The newspaper stated that the Bank is said to have adopted a “corridor” from 1.05 francs to 1.10 francs in EUR/CHF exchange rate. However, the central bank spokesperson declined to comment on the story.
Nevertheless, the Swiss Franc has come under pressure, trading 1.28% lower at 1.0521 per Euro. The SNB scraped its four year old EUR/CHF floor at 1.2 in the last month, which led to a surge in the value of Franc and turmoil in the FX markets.
EUR/CHF Technical Levels
The pair has an immediate resistance at 1.0542 (weekly 5-MA). On the flip side, a break below the immediate support on the hourly chart at 1.0497 shall open doors for a re-test of 1.0450 levels.