16 Oct 2013
EUR/CHF downwards on absent inflation in EZ, solid Swiss data
FXstreet.com (Athens) – The EUR/CHF is under pressure since the release of very soft CPI data in Euro land as well as due to the best Swiss ZEW data seen since May 2010.
EUR/CHF is slightly downwards since the kick off of the Asian opening session, since the best Swiss ZEW data seen since May 2010, dragged down the cross after having boosted the “Swissie” across the board. Alongside with the increased demand for the “Swissie” after the ZEW data released, the single currency was also offered no help by the EZ data. Indeed, inflation pressure was totally absent in September, showing that Euro land CPI was at its lowest levels for the past 3.5 years on the first month of the fall, while on a yearly basis was announced also at the very soft 1.1%. All in all, taken for granted the very soft inflation data it is comprehensible that ECB is very difficult to avoid another LTRO policy in the future.
Technical Aspects on EUR/CHF
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/CHF continues to rebound off the 1.2217/15 June and September lows and has bettered the six month resistance line at 1.2342.The Fibonacci cluster at 1.2372/81 has also been probed but caps at present. Above it the 1.2415 September and the 1.2435 August highs can also be seen. Dips should find support around the breached resistance line at 1.2342 and then around the 1.2278/66 August lows ahead of the 1.2217/15 June and September lows.”
EUR/CHF is slightly downwards since the kick off of the Asian opening session, since the best Swiss ZEW data seen since May 2010, dragged down the cross after having boosted the “Swissie” across the board. Alongside with the increased demand for the “Swissie” after the ZEW data released, the single currency was also offered no help by the EZ data. Indeed, inflation pressure was totally absent in September, showing that Euro land CPI was at its lowest levels for the past 3.5 years on the first month of the fall, while on a yearly basis was announced also at the very soft 1.1%. All in all, taken for granted the very soft inflation data it is comprehensible that ECB is very difficult to avoid another LTRO policy in the future.
Technical Aspects on EUR/CHF
Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “EUR/CHF continues to rebound off the 1.2217/15 June and September lows and has bettered the six month resistance line at 1.2342.The Fibonacci cluster at 1.2372/81 has also been probed but caps at present. Above it the 1.2415 September and the 1.2435 August highs can also be seen. Dips should find support around the breached resistance line at 1.2342 and then around the 1.2278/66 August lows ahead of the 1.2217/15 June and September lows.”