EUR/CHF: Franc at 33-month high five years after SNB removed the cap


  • EUR/CHF is trading at 33-month lows near 1.0759. 
  • The US added Switzerland to its current manipulators' list. 
  • The SNB removed the cap on the euro on Jan. 15, 2015.

Five years after the Swiss National Bank (SNB) shocked the financial markets by abandoning the euro cap, the Swiss Franc is trading at 33-month highs against the single currency. 

The EUR/CHF pair dropped to 1.0759 on Tuesday, the lowest level since April 2017 and was last seen trading at 1.0766. 

Tuesday's slide was likely triggered by the US' decision to add Switzerland to its watchlist of currency manipulators. The US move will likely discourage the SNB from taking steps to limit the upside CHF. 

Also, the Franc is trading at 33-month highs even with negative rates. The central bank's official interest rate currently stands at -0.75%. 

If the bank attempts to normalize its policy, it risks further CHF appreciation. Essentially, the SNB is stuck between a rock and a hard place. 

SNB abandoned cap in January 2015

On the 15th of January 2015, the Swiss National Bank suspended the minimum exchange rate of CHF 1.20 per euro and reduced its sight deposit interest rate by 50 basis points at -0.75%. The cap was introduced in September 2011. 

Technical levels

EUR/CHF

Overview
Today last price 1.0766
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 1.0765
 
Trends
Daily SMA20 1.0855
Daily SMA50 1.0918
Daily SMA100 1.0931
Daily SMA200 1.1043
 
Levels
Previous Daily High 1.0822
Previous Daily Low 1.0759
Previous Weekly High 1.0862
Previous Weekly Low 1.0782
Previous Monthly High 1.1044
Previous Monthly Low 1.0838
Daily Fibonacci 38.2% 1.0783
Daily Fibonacci 61.8% 1.0798
Daily Pivot Point S1 1.0742
Daily Pivot Point S2 1.0719
Daily Pivot Point S3 1.0679
Daily Pivot Point R1 1.0806
Daily Pivot Point R2 1.0846
Daily Pivot Point R3 1.0869

 

 

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