EUR/CHF to find a solid support at the 1.08 level – ING

FXStreet Insights Team FXStreet

EUR/CHF dropped very close to the 1.0800 level this week, before bouncing back to the 1.0850 level yesterday. Economists at ING believe the pair has found a floor at the mentioned 1.0800 mark and will trade above it over the coming week.

Is 1.08 the bottom of the recent downtrend in EUR/CHF?

“The choppy risk environment is continuing to put downward pressure on the pair, and the SNB is likely stepping in with an increasing amount of FX interventions to curb the franc’s strength.”

“Next week, the ECB's rate announcement will be the main focus for EUR/CHF, as there are no market-moving events in Switzerland, but we do not expect a big market impact.”

“The recent rise in COVID-19 cases in Europe had the potential of turning into a driver for more EUR/CHF downside, but the approach shown by France (which appears to be a shared one across Europe) not to react with new restrictions but encourage vaccination is holding markets from re-rating Eurozone growth prospects. When combined with the SNB substantial FX interventions, we think 1.08 could be the short-term lower bound for EUR/CHF.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.