The Swiss National Bank’s (SNB) announcement that it will defend the SFr1.2000 level against the euro with “utmost determination” saw the euro strengthen significantly against the Swissie to bring the rate back above the SFr1.2000 level. The recent strength in the Swissie has led many to believe that the SNB is about to intervene and yesterday’s comments make that possibility inevitable. The SFr1.2000 level could remain support for quite some time now and Capital CFDs quotes a price of SFr1.2035-SFr1.2039 for euro-Swiss franc.
The euro has had a rough time recently due to ongoing concerns for the eurozone debt situation. Global equities have been falling, and traders have sought after the safe currencies. Against the dollar, the single currency has fallen consistently for five days. However we could be seeing a bit of a bear squeeze at the moment. The pair has broken out of a medium-term declining trend line, so there could be some positivity on its way. Capital Spreads quotes $1.4185-$1.4186 for euro-dollar.