EUR/CHF climbs to multi-day highs past 0.9900
- EUR/CHF adds to Friday’s uptick above 0.9900.
- The upbeat tone in the risk complex lends legs to the cross.
- ECB Lagarde said elevated inflation will persist for longer.
The better tone in the risk-associated universe motivates EUR/CHF to extend last week’s recovery north of the 0.9900 barrier on Monday.
EUR/CHF bid on risk-on mood
EUR/CHF advances for the second session in a row and manages to regain the area above 0.9900 the figure amidst an auspicious start of the new trading week.
Indeed, concerns around the banking sector in the old continent appear somewhat alleviated in response to news involving UBS and Credit Suisse, although this does not prevent shares of the latter to shed nearly 60% at the beginning of the week.
Looking at the bigger picture, the better tone in the risk complex helps the cross regain the 0.9900 barrier and beyond and clinch fresh 2-week tops against the backdrop of another negative session in the greenback.
Around the single currency, Chair C.Lagarde reiterated there is no trade-off between prices and financial stability, adding that the central bank could provide liquidity in case of need. More from Lagarde, she noted that the interest rate remain the exclusive tool in setting monetary policy, at the time when she insisted on the persistence of elevate inflation and highlighted the data-dependent stance from the ECB when it comes to decision on rates.
EUR/CHF significant levels
As of writing the cross is advancing 0.49% at 0.9917 and faces the next resistance at 1.0041 (monthly high March 2) ahead of 1.0097 (2023 high January 13) and finally 1.0514 (monthly high June 9 2022). On the downside, the breach of 0.9842 (200-day SMA) would expose 0.9705 (2023 low March 15) and then 0.9643 (weekly low October 12 2022).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
