The Euro to Swiss Franc (EUR/CHF) exchange rate has smashed
through the SNB’s suspected exchange rate ‘corridor’ and could fall
further.
Part of the reason for the SNB’s removal of the original cap was that the recent decline in the Euro was putting it under intense pressure. However, demand for the common currency has only slid further since then.
At the beginning of the week it was reported that the SNB is pursuing an unofficial exchange rate corridor of between 1.05 and 1.10 and has been intervening in the currency market in order to achieve it.
However, the Euro has tumbled through this level, with the EUR/CHF exchange rate closing out Friday’s European session trading in the region of 1.0460.
Demand for the Euro has been seriously undermined by the recent negotiations between Greece and its creditors as it appears neither side is prepared to compromise on the issue of Greek debt.
While Syriza, an anti-austerity party and winner of the recent general election, is no longer pushing for the wiping out of Greece’s debt obligations, it is determined to renegotiate the terms of the nation’s bailout.
If it seems that the ECB is going to stand firm and not allow Greece any leeway, the nation could move closer to exiting the currency bloc.
Read more Click here / www.trade4x.net
Euro to Swiss Franc (EUR/CHF) Exchange Rate Drops to 1.0460
Although the Euro to Swiss Franc (EUR/CHF) exchange rate has recovered from the lows struck in the immediate aftermath of the Swiss National Bank’s (SNB) decision to ditch its cap with the common currency, the pairing remains bearish.Part of the reason for the SNB’s removal of the original cap was that the recent decline in the Euro was putting it under intense pressure. However, demand for the common currency has only slid further since then.
At the beginning of the week it was reported that the SNB is pursuing an unofficial exchange rate corridor of between 1.05 and 1.10 and has been intervening in the currency market in order to achieve it.
However, the Euro has tumbled through this level, with the EUR/CHF exchange rate closing out Friday’s European session trading in the region of 1.0460.
Demand for the Euro has been seriously undermined by the recent negotiations between Greece and its creditors as it appears neither side is prepared to compromise on the issue of Greek debt.
While Syriza, an anti-austerity party and winner of the recent general election, is no longer pushing for the wiping out of Greece’s debt obligations, it is determined to renegotiate the terms of the nation’s bailout.
If it seems that the ECB is going to stand firm and not allow Greece any leeway, the nation could move closer to exiting the currency bloc.
Read more Click here / www.trade4x.net
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