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EUR/CHF with a slightly bullish bias ahead of critic week

FXStreet (Córdoba) - EUR/CHF is trading modestly higher for the week but remains moving between 1.0800 and 1.0900, holding a slightly bullish tone in the short-term.

After trading momentarily above 1.1000 back in September, the pair started to correct to the downside and bottomed earlier in November at 1.0726. From there it has been rising at a modest pace and last week reached 1.0900, but it failed to break higher.

The pair declined at the beginning of the week and bottomed at 1.0805/10. From there bounced back to the upside.

A key week ahead

Next Thursday, a week from now, the European Central Bank will announce its decision on monetary policy. More easing is expected, it could be an extension of the purchase program or another rate cut. The decision is likely to have an impact on the euro and also on the Swiss franc. ECB decisions tend to have a strong impact on CHF, even larger than on the EUR.

Policy makers at the Swiss National Bank (SBN) will watch closely what the ECB decides and how it could impact them. It the CHF appreciates significantly or if in Switzerland consider that the announcement of the ECB could cause undesired effects, the SNB could also act, lowering interest rates even further into negative territory or with interventions in the currency market.

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