- Swiss Franc continues to slide against US Dollar, no matter what.
- EUR/CHF very close to famous 1.2000.
The Swiss franc continues to be among the worst performers in the currency market. The USD/CHF pair is about to post the second gain in-a-row and highest close since January 11. The rally is being supported by a weak Swiss Franc.
The pair yesterday broke above 0.9640/50, a key resistance and today accelerated the move higher. Today it peaked on European hours at 0.9697 and then pulled back, finding support at 0.9650. Near the end of the session was hovering around 0.9680/85, with the bullish tone intact.
The rally so far was capped by the 0.9700 area. Above that level resistance levels might be seen at 0.9725 and 0.9750. On the flip side, 0.9645 has become the immediate support, followed by 0.9605/10 and 0.9580.
EUR/CHF shy of the 1.2000 famous
The rally of EUR/CHF is being the main driver of CHF weakness. The pair today reached 1.1990, hitting a fresh 3-year high. The euro continues to move toward the 1.2000 area for the first time since the Swiss National Bank stopped defending that area.
“In our view the money market still ignores that the road to exit for the SNB entails more steps than that of the ECB: fading SNB intervention is only a first step in the SNB’s 'normalisation' process; the next step will be for the SNB to stop characterising CHF as ‘highly valued’. We thus think the SNB will remain side lined, which should allow EUR/CHF to edge firmly into the 1.20s this year amid a continued ECB ‘normalisation’ process”, wrote analysts at Danske Bank.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.