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10 Nov 2014
EUR/CHF hits fresh 2-year lows
FXStreet (Córdoba) - EUR/CHF continues to move toward the dangerous 1.20 area. Recently printed a fresh two-year low at 1.2020 and remains under pressure.
During the Asian session the pair attempted to recover from 1.2025 but found resistance at 1.2035 and turned to the downside, breaking below previous lows. Currently trades at 1.2023, 10 pips below Friday’s closing price.
SNB closer to being challenged
The latest announcements of the ECB pushed the euro to the downside in the market. More stimulus from the central bank could add pressure to the euro in the market and also to the Swiss national Bank, if EUR/CHF continues to approach 1.20. Late in november, the Swiss Gold referendum could add volatility to the Swiss franc and it could favor moves toward 1.2000.
The Swiss central bank will be forced to intervene in the currency market to weaken the franc and also it could take further steps, introducing negative rates if the 1.20 is tested.
During the Asian session the pair attempted to recover from 1.2025 but found resistance at 1.2035 and turned to the downside, breaking below previous lows. Currently trades at 1.2023, 10 pips below Friday’s closing price.
SNB closer to being challenged
The latest announcements of the ECB pushed the euro to the downside in the market. More stimulus from the central bank could add pressure to the euro in the market and also to the Swiss national Bank, if EUR/CHF continues to approach 1.20. Late in november, the Swiss Gold referendum could add volatility to the Swiss franc and it could favor moves toward 1.2000.
The Swiss central bank will be forced to intervene in the currency market to weaken the franc and also it could take further steps, introducing negative rates if the 1.20 is tested.