EUR/CHF is getting alot of attention at present. Swissy has made some decent gains overnight, the cross presently down at 1.4640 having closed out around 1.4735 in Europe Thursday. Indeed the cross reached 1.4580 at one stage before recovering.
The are a myriad of reasons being given for the move. Some mention the ECB’s bleak outlook for the euro-zone economy, with more rate cuts on the way. Some mention swissy’s safe haven status coming into play against the backdrop of growing concerns over General Motors and the global economy as a whole. Some see the CHF appreciation partly as a relief rally, with the Swiss authorities wanting to develop swiss secrecy laws rather than dismantle them. Some see the move partly tied to eastern block mortgages which were financed in swiss francs and are now going sour. I’m sure there are other factors at play here, but there’s a few for consideration.
As mentioned earlier, we’re presently at 1.4640. Technical support is seen at 1.4545 and then important 1.4500. Some technicians see any breech of 1.4500 opening up a move to 1.4300.
