EUR/CHF in multi-week highs near 1.0800
- EUR/CHF moves higher and approaches the 1.08 barrier.
- Upside momentum in EUR, risk trends bolster the climb.
- ECB’s C.Lagarde, De Guindos next on tap in the calendar.
The selling pressure around the Swiss franc is picking up pace and is lifting EUR/CHF to fresh multi-day peaks in the boundaries of 1.08 the figure on Wednesday.
EUR/CHF challenges monthly highs near 1.08
The generalized upbeat mood in the risk-associated universe has been the exclusive driver of the investors’ exodus from the safe havens in past weeks, encouraging EUR/CHF to rebound sharply from July’s low in the 1.06 neighbourhood.
Also adding to CHF-weakness, political jitters within the euro area now look subsided in response to the recent deal to fund the post-pandemic recovery in the EU with €750 billion (€390 billion in grants and €360 billion in loans). The so-called European Recovery Fund will be now voted at the European Parliament.
It is worth recalling that the franc often is a pretty good barometer of the political scenario in the UE, apart from its safe haven condition.
Later in the docket, ECB’s Christine Lagarde will participate in a Washington Post Live event, while Luis De Guindos will speak at an online annual US-EU Symposium.
EUR/CHF significant levels
As of writing the cross is gaining 0.36% at 1.0794 and a surpass of 1.0818 (23.6% Fibo of the May-June rally) would expose 1.0915 (2020 high Jun.5) and then 1.1033 (monthly high Dec.13 2019). On the other hand, the immediate support is located at 1.0730 (200-day SMA) ahead of 1.0663 (55-day SMA) and finally 1.0601 (monthly low Jul.10).