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EUR/CHF consolidates above 1.0300

FXStreet (Edinburgh) - The Swiss franc is markedly lower vs. its European peer on Wednesday, with EUR/CHF returning to levels beyond the 1.0300 handle.

EUR/CHF in multi-day peaks

The cross managed to clinch the mid-1.0300 after the SNB informed further exceptions from its scheme of negative rates. The central bank reported that negative interest rates will now also apply to sight deposits held by enterprises associated with the Confederation and the pension fund.

The persistent softness around the euro plus sustainable demand for the safe haven CHF sparked the leg lower from February tops just above 1.0800 the figure.

EUR/CHF levels to consider

At the moment the cross is advancing 0.87% at 1.0342 with the next hurdle at 1.0401 (high Apr.13) ahead of 1.0495 (high Apr.6) and finally 1.0601 (high Mar.23). On the downside, a break below 1.02345 (low Apr.20) would expose 1.0083 (low Jan.27) and then 0.9819 (low Jan.26).

SNB move increases the odds of more negative rates – SG

Sebastien Galy of Societe Generale, views that the SNB move to tighten its rule on sight deposits increases the odds that it will go for more negative interest rates, especially faced with the risk of a Greek event.
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SNB announces fewer exemptions from negative interest rates

The Swiss National Bank (SNB) said it has considerably reduced the group of sight deposit account holders that are exempt from negative interest.
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