EUR/CHF challenges 1.0600

FXStreet (Edinburgh) - The Swiss franc is appreciating vs. the single currency on Monday, sending EUR/CHF to test the 1.0600 neighbourhood.

EUR/CHF coming down from fresh peaks

After hitting fresh highs in the 1.0640 area last Thursday, the cross is now correcting lower towards the 1.0600 neighbourhood, following the drop in USD/CHF.

It will be an interesting week for the cross: while the Eurogroup and Greece will try to clinch a deal on the Greek debt today, the ECB will publish its ‘accounts’ (minutes) on Thursday. In addition, on the Swiss side, SNB’s Thomas Jordan will give a speech tomorrow ahead of the ZEW Survey on Wednesday.

EUR/USD levels to watch

The cross is now losing 0.17% at 1.0609 with the immediate support at 1.0500 (psychological level) ahead of 1.0414 (low Feb.9) and then 1.0213 (low Jan.29). On the upside, a break above 1.0638 (high Feb.13) would expose 1.0642 (high Feb.5) and then 1.0700 (psychological handle).

Monetary accommodation will continue in China – DB

Strategists at Deutsche Bank, expects Chinese policy makers might loosen fiscal and monetary policies aggressively in H1 2015, with growth expected to surprise on the downside.
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