- EUR/CHF up for the fifth-day in-a-row, at 3-year highs.
- Euro closer to the 1.2000 SNB floor but no change is seen at SNB.
The EUR/CHF pair broke above last week highs and is headed toward the highest close since January 2015, when it abandoned the 1.20 floor. It is moving closer to that area where volatility could rise.
The Euro accelerated the advance today and as of writing, it was trading at the highs at 1.1946. Since March 1st gained 450 pips. The situation in Syria and trade tensions between the US and China did not stop the pair. Usually, the Swiss franc appreciates in risk-off environments.
From “significantly overvalued” to “highly valued”
After 27 months, the pair is shy of the 1.2000 area that before January 2015 was defended by the Swiss National Bank with “utmost determination”. Two years ago EUR/CHF was trading at 1.06, since then gained 12%. The SNB continues to see the currency very strong but it changed from “significantly overvalued” to “highly valued”.
The euro strengthened significantly as the Eurozone economy continues to show solid growth. The SNB is expected to remain on hold and to act only after the ECB ends its asset purchase program and begins rising rates. The main risk to the mentioned outlook is inflation.
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.