EUR/CHF drops to lowest since July 2017
|- EUR/CHF slipped to the lowest level since July 2017.
- Markets price in an expansive mood at the ECB.
Dovish European Central Bank (ECB) expectations continue to bode well for the Swiss franc (CHF).
The EUR/CHF pair is currently trading at 1.0970, having hit a low of 1.0965 soon before press time. That was the lowest level since July 2017.
The pair is down 190 pips from the high of 1.1155 observed on July 12. Further, it is down more than 4% from the high of 1.1476 seen on April 23.
The sell-off could be associated with the increasingly expansive mood at the ECB. The central bank is widely expected to sound dovish later today, setting the stage for a minor rate cut later this year, something the markets seem to have priced in over the last few weeks.
The pair could slide if the ECB hits at a 25 basis point rate cut in the deposit rate of -0.40% in September.
That said, an aggressive easing by the ECB would ramp up pressure on the Swiss National Bank to dive further into the negative territory.
As of Wednesday, the probability of SNB cutting rates by a quarter-point by December stood at 72%.
Pivot levels
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.