EUR/CHF moves at a glacial pace but it turned around ‘quickly’ from a test of 1.2150 in a bounce to 1.2167.
The pair has been under some pressure since the ECB introduced negative deposit rates. Normally that kind of turnaround would be a signal to take a long position and forget about it for a few weeks in the hopes of gaining 50 pips but we’re in uncharted monetary policy territory so I don’t see any urgency to buy here.
The SNB’s Jordan said he won’t exclude any measure including negative rates but that kind of statement sounds like a platitude rather than a threat. He also said the SNB hasn’t intervened to defend the 1.20 floor since Sept 2012 (when the pair was at 1.2010). That leaves plenty of space for a move lower before EUR/CHF screams ‘buy’.
EURCHF daily
