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19 Feb 2013
Forex: EUR/CHF flat around 1.2330, ahead of Jordan
The Swiss franc is trading almost unchanged on Tuesday, hovering over 1.2330 ahead of the speech by SNB’s Thomas Jordan, due in the European evening.
M.Mohi-uddin, Director of FX Strategy at UBS, expects the franc to gradually lose ground against the euro, in line with the view of Swiss policymakers and reinforcing Jordan’s comments that the franc remains overvalued. The analyst adds that the government will adopt macro prudential measures to act on the Swiss housing market, instead of lifting rates.
“That will allow the SNB to keep its minimum 1.20 EURCHF target throughout 2013. It will also make Swiss real estate assets less attractive on the margin. As a result we expect the cross to keep trading in a higher 1.22-1.27 range for the next few months while the Eurozone crisis remains contained”, explains the expert.
At the moment the pair is up 0.01% at 1.2331 with the next resistance at 1.2348 (high Feb.14) ahead of 1.2356 (MA21d) and then 1.2387 (highFeb.13).
On the downside, a break below 1.2285 (low Feb.15) would expose 1.2280 (low Feb.14) and then 1.2262 (MA55d).
M.Mohi-uddin, Director of FX Strategy at UBS, expects the franc to gradually lose ground against the euro, in line with the view of Swiss policymakers and reinforcing Jordan’s comments that the franc remains overvalued. The analyst adds that the government will adopt macro prudential measures to act on the Swiss housing market, instead of lifting rates.
“That will allow the SNB to keep its minimum 1.20 EURCHF target throughout 2013. It will also make Swiss real estate assets less attractive on the margin. As a result we expect the cross to keep trading in a higher 1.22-1.27 range for the next few months while the Eurozone crisis remains contained”, explains the expert.
At the moment the pair is up 0.01% at 1.2331 with the next resistance at 1.2348 (high Feb.14) ahead of 1.2356 (MA21d) and then 1.2387 (highFeb.13).
On the downside, a break below 1.2285 (low Feb.15) would expose 1.2280 (low Feb.14) and then 1.2262 (MA55d).