• 18 Sep 2022

Recession fears and geopolitical tensions have boosted the Swiss franc as a safe haven currency. Last June, the Swiss National Bank (SNB) hiked interest rates by 50 points, causing the Swiss Franc to go up to a 7-year high. Andrea Maechler, SNB’s governing board member, said on Thursday that “it’s important to take monetary policies step by step”, [depending on inflation data]. “Next step depends on analysis underway, and we need to gauge inflationary pressure, exchange rate,” spoke SNB’s Chairman, Thomas Jordan, in a statement after the ECB meeting. Overall, there’s no signal on the next monetary tightening decision for the upcoming September 22 SNB meeting.

Due to the economic turmoil in Europe, the Swiss Franc continues to strengthen against the Euro. The outlook is bearish for Euro/CHF. The pair has formed a double top on the daily chart (R2 1.052). Key pivot resistance levels to watch for are R3 0.98826, R2 0.8304, and R1 0.97646. A move above 0.985 could indicate a reversal. Key pivot support levels are S1 0.96466, S2 0.95944, and S3 0.95286. According to US News, following the ECB meeting on Thursday, Goldman Sachs advised investors to short EUR/CHF as the price can fall to 0.955 if SNB decides to hike interest rates.

Also Read:- Top volatile commodities

- Jana Hassanieh