Tuesday, January 12, 2010

Forex: CHF tempers multi-day rally versus EUR and USD

FXstreet.com (Barcelona) – The Swiss franc has stopped its climb respect to both the euro and the dollar during today's trading. Even so, experts say there is still a “high possibility” of an intervention by the Swiss National Bank to keep the Swissy in check.

The EUR/CHF halted its slide with a modest daily rise to 1.4746 at the time of writing from an opening price of 1.4746. The CHF had been gaining non-stop on the EUR ever since Dec. 16.

The USD/CHF also cut its two-day fall with a very modest push to currently trade in the area of 1.0160.

Both pairs have been horizontal during today's trading.

Even so, the overall climate still points to a stronger Swissy and therefore action by the SNB, according to the Swiss e Trade Strategy Team.

“Since the beginning of the year, the Swiss franc has gained further strength [...] This development is unwelcome for Switzerland in times of a weak economy - especially against the euro, the small country's main trading partner,” says the Swiss e Trade Strategy Team. “The SNB, so far reluctant to act with instruments like quantitative easing, will not allow the CHF to strengthen much further. Direct interventions are a high possibility.”

USD/CHF (Jan 13 at 05:22 GMT)

1.0181/84 (-0.02%)

H 1.0207 L 1.0174

S3S2S1R1R2R3
1.01261.01521.01771.01891.02141.0240
[?]Trend Index[?]OB/OS Index
Strongly BearishNeutral
Data updated on Jan 13 at 04:53 (15-minute timeframe)

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