5 Nov 2013
EUR/CHF capped by 1.2300 area
FXstreet.com (Athens) – The EUR/CHF was heading mostly sideways since the kick off of the European trading session, but after the weak European, Swiss data released the pair was dragged down abruptly.
The EUR/CHF was trading steadily higher the past hours in the midst European trading session hovering around 1.2315 area, but since the Euro zone PPI, as well as the Swiss inflation data came across the board on much weaker than expected levels, the cross broke the 1.2300 handle. Pertaining to Swiss Inflation data, the Swiss CPI declined both on a year-on-year basis as well as on a month-on-month basis, thus, it might be well anticipated that it might be needed some time yet in order the Swiss economy manages to get out from its deflationary cycle. Taken for granted that Swiss economy target regarding inflation remains towards 2%, the SNB will probably keep on the same monetary tools, thus, is unlikely to abandon the EUR/CHF 1.2000 floor, or to increase rates in the short-term.
Technical Aspects on the EUR/CHF
It is noteworthy to mention that for a series of daily closes, the pair closed below the 30-daily MA which is now laying on 1.2305. Thus,the bearish momentum of the cross might continue to prevail across the board, which could pave the way to move further downwards near the lower 30-day Bollinger Band a 1.2235.
The EUR/CHF was trading steadily higher the past hours in the midst European trading session hovering around 1.2315 area, but since the Euro zone PPI, as well as the Swiss inflation data came across the board on much weaker than expected levels, the cross broke the 1.2300 handle. Pertaining to Swiss Inflation data, the Swiss CPI declined both on a year-on-year basis as well as on a month-on-month basis, thus, it might be well anticipated that it might be needed some time yet in order the Swiss economy manages to get out from its deflationary cycle. Taken for granted that Swiss economy target regarding inflation remains towards 2%, the SNB will probably keep on the same monetary tools, thus, is unlikely to abandon the EUR/CHF 1.2000 floor, or to increase rates in the short-term.
Technical Aspects on the EUR/CHF
It is noteworthy to mention that for a series of daily closes, the pair closed below the 30-daily MA which is now laying on 1.2305. Thus,the bearish momentum of the cross might continue to prevail across the board, which could pave the way to move further downwards near the lower 30-day Bollinger Band a 1.2235.