- EUR/CHF moves higher and approaches the 1.08 barrier.
- Upside momentum in EUR, risk trends bolster the climb.
- ECB’s C.Lagarde, De Guindos next on tap in the calendar.
The selling pressure around the Swiss franc is picking up pace and is lifting EUR/CHF to fresh multi-day peaks in the boundaries of 1.08 the figure on Wednesday.
EUR/CHF challenges monthly highs near 1.08
The generalized upbeat mood in the risk-associated universe has been the exclusive driver of the investors’ exodus from the safe havens in past weeks, encouraging EUR/CHF to rebound sharply from July’s low in the 1.06 neighbourhood.
Also adding to CHF-weakness, political jitters within the euro area now look subsided in response to the recent deal to fund the post-pandemic recovery in the EU with €750 billion (€390 billion in grants and €360 billion in loans). The so-called European Recovery Fund will be now voted at the European Parliament.
It is worth recalling that the franc often is a pretty good barometer of the political scenario in the UE, apart from its safe haven condition.
Later in the docket, ECB’s Christine Lagarde will participate in a Washington Post Live event, while Luis De Guindos will speak at an online annual US-EU Symposium.
EUR/CHF significant levels
As of writing the cross is gaining 0.36% at 1.0794 and a surpass of 1.0818 (23.6% Fibo of the May-June rally) would expose 1.0915 (2020 high Jun.5) and then 1.1033 (monthly high Dec.13 2019). On the other hand, the immediate support is located at 1.0730 (200-day SMA) ahead of 1.0663 (55-day SMA) and finally 1.0601 (monthly low Jul.10).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.