EUR/CHF is trading lower on the day, presently at 1.5265 compared to a European opening around 1.5325.
Ongoing reports of the BIS selling above 1.5300 have weighed on the cross, as are growing suspicions the ECB might just be the next central bank to dip their toe into the quantitative ease waters.
However the downside for the cross remains limited by ongoing fears of renewed SNB intervention. The Swiss have made it plain they don’t want to see their currency strengthen against that of their biggest trading partner. Another inhibiting factor on the downside is the improved risk sentiment being seen, which helps erode swissy’s safe haven premium curtailing gains in the currency.
There are no doubt more factors at play, as there always are, but the above could well be enough to keep the cross boxed in for the short-term at least and restricted to a relatively narrow range.
