EUR/CHF hits two-week highs near 1.0580; deposits at SNB on the rise

Sight deposits rise in Swiss National Bank suggesting central bank has been active.
Swiss franc drops across the board on Monday.

Matías Salord FXStreet

The EUR/CHF rose on Monday from near 1.0500 and peaked at 1.0578, the highest level since April 9. As of writing, it trades at 1.0565, up 40 for the day, the biggest day in a month.

A slide of the Swiss franc across the board boosted EUR/CHF. The move was also supported by an improvement in market sentiment and takes place ahead of Thursday’s European Central Bank meeting.

Data released on Monday showed commercial banks deposits at the Swiss National Bank (SNB) rose by CHF 13.4 billion last week; the most significant increase since January 2015 when the central bank abandoned the 1.20 floor in EUR/CHF.

Higher deposits at the SNB suggest intervention to curb franc’s strength. Analysts see the SNB defending the 1.0500 area. Regarding monetary policy, at the moment, market participants do not expect more rate cuts from the SNB (currently at -0.75%).

A slide below 1.0500 could lead to an acceleration to the downside in EUR/CHF. It would be trading at the lowest since mid-2015. On the upside, resistance emerges at 1.0508 and 1.0605.

EUR/CHF

Overview
Today last price	1.0562
Today Daily Change	0.0031
Today Daily Change %	0.29
Today daily open	1.0531

Trends
Daily SMA20	1.055
Daily SMA50	1.0585
Daily SMA100	1.069
Daily SMA200	1.0818

Levels
Previous Daily High	1.0538
Previous Daily Low	1.0512
Previous Weekly High	1.0538
Previous Weekly Low	1.0509
Previous Monthly High	1.071
Previous Monthly Low	1.0525
Daily Fibonacci 38.2%	1.0528
Daily Fibonacci 61.8%	1.0522
Daily Pivot Point S1	1.0516
Daily Pivot Point S2	1.0502
Daily Pivot Point S3	1.0491
Daily Pivot Point R1	1.0542
Daily Pivot Point R2	1.0553
Daily Pivot Point R3	1.0567

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.