EUR/CHF continues to trade heavy, presently sitting at 1.5060 compared to a North American close Friday up around 1.5090.
Swissy’s improvement comes against the backdrop of heightened risk aversion, as worries grow that the swine flu outbreak will slow global economic recovery. This is bringing swissy’s safe haven status increasingly into play.
Despite this most recent sell-off, it remains debateable how far this swissy strength can extend. There remains a strong feeling that any approach of 1.5000 in the cross will ellicit a fairly swift reaction from the Swiss National Bank.
The SNB has vowed to combat any further swissy strength in order to help keep the spectre of deflation at bay. As a result, there remains a fairly decent interest to pick up the cross on dips below 1.5050.
EDIT: It has just come to my attention that there are apparently sell-stops gathering down in the 1.5025/30 area.
