22 Jan 2015
EUR/CHF consolidates below 1.0000 ahead of ECB verdict
FXStreet (Córdoba) - EUR/CHF dipped back below the parity level and entered a consolidation phase as markets await the European Central Bank monetary policy meeting.
EUR/CHF has spent the last sessions trading in a 150-pip range, which seems wide at first sight, but become more relative following last week’s SNB shocker. At time of writing, EUR/CHF is trading at 0.9940, 0.30% below its opening price, with the pair still looking to stabilize, although it will need to overcome the ECB meeting first.
Investors have adopted a wait-and-see stance heading into the ECB verdict and following reports that suggested the bank would propose €50 billion QE a month. "It seems there will be more room for disappointment out of today’s meeting, simply because the expectations have gotten well beyond the ECB’s objectives, partially thanks to Swiss National Bank’s surprise removal of the EUR/CHF floor on Thursday of last week", said Ipek Ozkardeskaya, analyst at Swissquote Bank.
EUR/CHF has spent the last sessions trading in a 150-pip range, which seems wide at first sight, but become more relative following last week’s SNB shocker. At time of writing, EUR/CHF is trading at 0.9940, 0.30% below its opening price, with the pair still looking to stabilize, although it will need to overcome the ECB meeting first.
Investors have adopted a wait-and-see stance heading into the ECB verdict and following reports that suggested the bank would propose €50 billion QE a month. "It seems there will be more room for disappointment out of today’s meeting, simply because the expectations have gotten well beyond the ECB’s objectives, partially thanks to Swiss National Bank’s surprise removal of the EUR/CHF floor on Thursday of last week", said Ipek Ozkardeskaya, analyst at Swissquote Bank.