EUR/CHF halts its advance at 1.1740 ahead of Trump's decision on tariffs

• EUR/CHF gained more than 250 pips in the last two weeks.
• Investors seem to want more out of the ECB.
• Trump to announce his decsion on tariffs at 20.30 GMT

The EUR/CHF is trading at around 1.1700 virtually unchanged on the important day of the ECB Governing Council meeting. 

EUR/CHF daily chart

The EUR/CHF had a noticeable advance well past 250 pips in the last two weeks probably driven by the hawkish tone of the ECB lately. However, on the ECB meeting day, the pair is trading flat on the day so far after retreating from daily highs at 1.1740. Buy the rumor sell the fact seems to be the motto across all Euro pairs. The ECB did drop their easing bias by removing the sentence in the forward guidance which says that it is ready to increase the asset purchase program (APP) “in terms of size and/or duration” if the inflation outlook or financial conditions were to worsen. It is definitely a hawkish move, however, Draghi downplayed it during the press conference. Maybe the most dovish message today is that inflation is still not quite there. The markets seemed to be disappointed as most traders seemed to have taken advantage of the ECB breakout to cash in profits and/or initiate new short positions. 

Trump is announcing his steel and aluminium decision at 20.30 GMT. More info here

There is no major data coming up next for the Euro nor the Franc. Earlier on Thursday the unemployment rate in Switzerland came in at 2.9% vs 3.0% expected but the data had no effect on the EUR/CHF as it was largely overshadowed by the ECB meeting.  

On Thursday the EUR/CHF peaked at 1.1740 before it retraced back down and erased the gains made on the day. The market is now consolidating just above the 61.8% Fibonacci retracement and the RSI is showing divergence versus the price action. Historically the 1.1740-1.1780 zone has been a supply zone and bulls will need much conviction to break through it. 

EUR/CHF 4-hour chart