Back
28 May 2013
Flash: EUR-CHF might attempt another move above the 1.25 mark - Commerzbank
FXstreet.com (London) - Analyst, Thu Lan Nguyen, at Commerzbank said that following the rise of last week (high at 1.2650) EUR-CHF is now trading around 1.25 again and explains that mainly speculation about an increase of the minimum exchange rate of the Swiss National Bank is creating price momentum every so often.
The question as to whether the Swiss economy is still suffering as a result of the strong franc is often at the centre of these concerns, he added. Today’s important data on (real) imports and exports showed a strong slump in exports (-7.6%). However, he said ‘Anyone taking a closer look at the series of data will soon realise that volatility is extremely high and that as a result the data is not that informative.’ Nonetheless, he went on to say this might cause renewed speculation about a higher minimum exchange rate. In that case EUR-CHF might attempt another move above the 1.25 mark.
The question as to whether the Swiss economy is still suffering as a result of the strong franc is often at the centre of these concerns, he added. Today’s important data on (real) imports and exports showed a strong slump in exports (-7.6%). However, he said ‘Anyone taking a closer look at the series of data will soon realise that volatility is extremely high and that as a result the data is not that informative.’ Nonetheless, he went on to say this might cause renewed speculation about a higher minimum exchange rate. In that case EUR-CHF might attempt another move above the 1.25 mark.