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8 Jan 2014
EUR/CHF rebounds off EUropean data
FXstreet.com (London) - EUR/CHF has retraced its gains after climbing to a session high of CHF1.2394 before concerns over an increasing German trade surplus sparked concerns that German spending was declining. Better-than-expected German factory order data has mitigated some of the effects of the trade balance numbers, up 2.1 percent versus a consensus expectation of 1.5 percent
In a morning of European data releases, unemployment held at 12.1 percent while retail sales beat expectations to print at 1.4 percent versus an expected 0.2 percent month-on-month rise.
SNB remains committed to EUR/CHF floor
SNB data released yesterday showed that the central bank’s currency reserve’s declined in December, falling 0.15 percent to CHF435.19, down from a revised CHF435.85 in November.
In September 2011, faced with an overheating CHF as investors fled Eurozone volatility, the SNB places a CHF1.2000 floor underneath the EUR/CHF pair in an effort to stymie deflationary pressures from an overheating franc. While much of the European volatility that helped drive the haven flows into the franc has abated, SNB president Thomas Jordan stated earlier this week that the central bank remains committed to enforcing the floor for the foreseeable future.
Most recent data showed that the SNB holds 48 percent of its foreign-currency reserves in euros and 27 percent in dollars.
EUR/CHF bouncing on European data
EUR/CHF is currently trading at CHF1.2379, close to flat on the day. The pair fell from a mid-morning high of CHF1.2394 down to CHF1.2364 before rebounding on strong German factory order data.
In a morning of European data releases, unemployment held at 12.1 percent while retail sales beat expectations to print at 1.4 percent versus an expected 0.2 percent month-on-month rise.
SNB remains committed to EUR/CHF floor
SNB data released yesterday showed that the central bank’s currency reserve’s declined in December, falling 0.15 percent to CHF435.19, down from a revised CHF435.85 in November.
In September 2011, faced with an overheating CHF as investors fled Eurozone volatility, the SNB places a CHF1.2000 floor underneath the EUR/CHF pair in an effort to stymie deflationary pressures from an overheating franc. While much of the European volatility that helped drive the haven flows into the franc has abated, SNB president Thomas Jordan stated earlier this week that the central bank remains committed to enforcing the floor for the foreseeable future.
Most recent data showed that the SNB holds 48 percent of its foreign-currency reserves in euros and 27 percent in dollars.
EUR/CHF bouncing on European data
EUR/CHF is currently trading at CHF1.2379, close to flat on the day. The pair fell from a mid-morning high of CHF1.2394 down to CHF1.2364 before rebounding on strong German factory order data.