After topping out around Chf1.2443 earlier this month on hopes that the SNB might raise the cross peg, EUR/CHF tumbled Dec 15 when the SNB reaffirmed its commitment to keep the peg at Chf1.20. In subsequent sessions, the cross has stalled ahead of Chf1.2250 and indeed on two occasions has closed below Chf1.2200. Even soft KOF data released earlier Wednesday (Dec KOF economic barometer at 0.01 vs 0.34 in November and 0.75 in October) failed to roil Swissy, which like the JPY and USD is underpinned (vs the EURO) by safe-haven demand. “The current KOF Economic Barometer signals that year-on-year growth of Swiss Gross Domestic Product (GDP) is likely to stagnate in the coming months,” the KOF report says. EUR/CHF holds at CH1.2194, on the low side of a Chf1.2180 to Chf1.2222 range.
EasyForexNews Research Team