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16 Jan 2015
EUR/CHF trades steady in the Asian session
FXStreet (Mumbai) - The EUR/CHF pair trades steady during the Asian session today as the markets digest the Swiss Franc Tsunami triggered by the Swiss National Bank’s (SNB) decision to scrap the minimum exchange rate.
The pair currently trades at 0.9932, compared to the previous session’s close at 0.9938 levels. The abandonment of cap, that had pinned the currency at 1.2 Francs per Euro, pushed the Swiss Franc higher by more than 30% against the single currency. The SNB also announced a further cut in the interest rate to -0.75%. Moreover, the move came one week ahead of the European Central Bank's (ECB) anticipated launch of a sovereign bond buying program, due to which markets now speculate a bigger-than-expected QE program from the ECB next week.
So far, the markets have seen a sharp fall in the bond yields across the globe post SNB’s actions. The stock markets in the US retreated while the 10-year yields fell closer to 1.7% level. Meanwhile, German 10-yr yield fell to a record lows yesterday.
EUR/CHF Technical Levels
The immediate support is seen at 0.9888, under which the pair could re-test 0.9713 levels seen yesterday. Meanwhile, resistance is seen at 0.9938 and 1.00 levels.
The pair currently trades at 0.9932, compared to the previous session’s close at 0.9938 levels. The abandonment of cap, that had pinned the currency at 1.2 Francs per Euro, pushed the Swiss Franc higher by more than 30% against the single currency. The SNB also announced a further cut in the interest rate to -0.75%. Moreover, the move came one week ahead of the European Central Bank's (ECB) anticipated launch of a sovereign bond buying program, due to which markets now speculate a bigger-than-expected QE program from the ECB next week.
So far, the markets have seen a sharp fall in the bond yields across the globe post SNB’s actions. The stock markets in the US retreated while the 10-year yields fell closer to 1.7% level. Meanwhile, German 10-yr yield fell to a record lows yesterday.
EUR/CHF Technical Levels
The immediate support is seen at 0.9888, under which the pair could re-test 0.9713 levels seen yesterday. Meanwhile, resistance is seen at 0.9938 and 1.00 levels.