Free Trial

CHF: Higher Core Yields Also Weighing on Swiss Franc, EURCHF Back Above 0.94

CHF
  • Higher core yields and the associated pressure on the yen has also filtered through to the Swiss Franc, with both EURCHF and USDCHF extending gains in recent trade, rising over 1% on Wednesday.
  • EURCHF looks set to end a six-day losing streak that briefly saw the pair reach a fresh nine-year low on Monday. The pair traded as low as 0.9211 during the severe risk aversion with notorious safe havens attracting strong early demand. However, the most recent bounce has seen the EURCHF recovery extend above yesterday’s highs at 0.9380 and breach the 0.94 handle. Initial resistance is not seen until the June lows of 0.9478 and 0.9527, the 20-day EMA.
  • In similar vein, USDCHF is up 1.15% as the widening of yield differentials weighs on the low yielders. USDCHF 20-day EMA resistance comes in at 0.8769.
  • As a reminder, the Swiss docket remains generally light ahead of the next round of CPI data on Sep 03 and the next Swiss National Bank decision does not fall until Sep 26.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.