EUR/CHF soars to monthly highs above 1.0600 on risk appetite and EU fund
|- Euro rises across the board on Franco-German proposal for a recovery fund.
- EUR/CHF is having the biggest daily gain in more than a year.
The EUR/CHF pair is rising almost a hundred pips on Monday supported by an improvement in market sentiment and also by the announcement of a European Union fund for the recovery. It reached at 1.0606, the highest level since April 29.
EU recovery fund
The euro rose further during the American session after French President Macron and German Chancellor Merkel presented a plan to create a 500 billion euro recovery fund able to offer grants to those most hit by the crisis. After the announcement, EUR/CHF strengthened.
The pair was already trading higher on the back of risk appetite. Equity prices across the globe are rising sharply on optimism about a vaccine and amid a gradual reopening of many economies.
Swiss Franc under pressure
Risk appetite weakened the demand for safe-havens, including the Swiss franc. Earlier on Monday, Swiss National Bank’s Meachler denied that the 1.0500 area was an informal floor.
Sight deposits at the SNB rose to 673.5 billion francs compared to 669.1 billion of the previous week, suggesting that the central bank kept intervening to curb CHF’s strength.
Technical 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.