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22 May 2013
EUR/CHF spiked 1.2600 on Jordan comments
FXstreet.com (Barcelona) - The Swiss franc posted fresh 2-year highs above the key mark at 1.2600 on Wednesday, bolstered by comments by SNB’s T.Jordan.
In his speech, the President of the SNB underlined that the franc remains strong, adding at the same time that the cap is crucial for the Alpine economy. He went on signalling that negative interest rates were never ruled out as a policy option, as well as lifting the current peg. Jordan also discarded that Switzerland would join the euro area, saying it is ‘not a realistic scenario’.
The cross is now advancing 0.67% at 1.2604 with the next resistance at 1.2645 (high May 20 2011) followed by 1.2693 (high May 13 2011) and finally 1.2702 (high May 11 2011).
On the flip side, a breakdown of 1.2459 (MA10d) would target 1.2436 (low May 20) en route to 1.2416 (low May 17).
In his speech, the President of the SNB underlined that the franc remains strong, adding at the same time that the cap is crucial for the Alpine economy. He went on signalling that negative interest rates were never ruled out as a policy option, as well as lifting the current peg. Jordan also discarded that Switzerland would join the euro area, saying it is ‘not a realistic scenario’.
The cross is now advancing 0.67% at 1.2604 with the next resistance at 1.2645 (high May 20 2011) followed by 1.2693 (high May 13 2011) and finally 1.2702 (high May 11 2011).
On the flip side, a breakdown of 1.2459 (MA10d) would target 1.2436 (low May 20) en route to 1.2416 (low May 17).