Lot of speculation doing the rounds on whether the SNB will raise the EUR/CHF peg tomorrow
Today’s poor ZEW sentiment number was a result of exporters feeling the squeeze of a strong Swiss Franc. Also feeling the squeeze earlier were a few longs caught out by the small spike lower to 1.2300 earlier . There’s tech support down at 1.2300 and 1.2270/75, with sell stops just under 1.2300 and 1.2250 . Resistance is at 1.2370/80
There have also been reports that a swiss name has been selling euro-swiss gamma this morning ahead of the SNB meeting tomorrow morning.
Either way there is a likelihood of some more strong comments from the SNB regarding an overvalued franc if the peg isn’t raised; which may satisfy some of the EUR/CHF longs out there in the interim.
EUR/CHF’s at 1.2334
