While EUR/CHF is only marginally firmer, presently up at 1.5115 from a North American close Monday around 1.5100, it does appear to have some decent underpinning.
Some factors underpinning the cross pairing are the recent economic data releases coming out of the respective currency centres. While recent data suggests some improvement in sentiment in the euro zone, things in Switzerland appear pretty dire. This was highlighted by this mornings release of the Swiss consumer sentiment index for the Q-2 which saw a -38 read, down from -23 in the Q-2 and some way below the median forecast of -28.
Meanwhile general risk appetite appears high, and this will be helping undermine swissy’s well-defined safe haven premium.
Finally Swiss National Bank’s Vice Chairman Hildebrand, in an interview with the Handelsblatt, has reiterated the SNB’s resolve to fend off deflationary risk by using currency policy.
The market remains wary of 1.5000 being the line the SNB has drawn in the sand, fearing any approach will likely draw the eerie of the central bank. We should see good demand continue to resurface on dips to the 1.5000-1.5050 area.
Today saw a 1.5148 session high posted. I think we could see an early-ish retest of said level.
