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EUR/CHF rises above 1.2050 ahead of ECB

FXStreet (Córdoba) - EUR/CHF is having so far the best day in a month, moving away from 2-year lows and has risen back above 1.2050 ahead of the European Central Bank (ECB) decision and Draghi’s press conference.

The pair bottomed during the Asian session at 1.2029, reaching the lowest price since november 2012 and then bounced to the upside as the euro strengthened across the board.

EUR/CHF near the 1.20 floor

Despite recovering from 1.2029, the pair continues to trade near the floor of 1.20 established by the Swiss National Bank (SNB), at a “danger zone”, according to Ipek Ozkardeskaya an FX Analyst at Swissquote Bank. “There are fundamental forces the SNB should fight against: the ultra-expansive ECB and the upcoming gold referendum”.

Ozkardeskaya notes that the mentioned external factors favor a stronger Swiss franc. “We expect a surprise intervention from the SNB should the tensions on the 1.20-floor do not ease. In a very exceptional fashion, the SNB voices its negative stance regarding the gold referendum,” noted the analyst.

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