Eurchf To Visit Support This Week

 Eurchf To Visit Support This Week

Eur/Chf To Visit 0.9600 Support This Week

According to ING economists, the EUR/CHF pair will likely move lower in the short term. This forecast was made ahead of the highly anticipated SNB decision due in the next few days.

For now, the general perception in the market is that SNB will likely adopt a hold approach in regard to the interest rate policy. There are some rumors about a possible rate cut as early as this month, but the chances of that are very slim.

Bps Rate Hike Expected By Snb

ING added that the SNB will likely wait for at least a few months to get more data related to inflation. The SNB will be looking for signs that suggest that inflation has stabilized, and it is only possible through hard data.

Given this, it makes sense that the SNB will go towards its first rate starting in June of this year. What's more interesting is that the ECB is also expected to roll out its first rate cut in June 2024. That's why it is safe to say that June 2024 will be a highly volatile month for the EUR/CHF pair.

The economists also added that the SNB is likely to introduce a 7 bps rate hike (0.07%). As a result, the CHF will have the upper hand against the EUR, which means that the EUR/CHF will move lower.

move lower in the EUR/CHF means the most probable support for traders will be 0.9600. Although this is a pretty solid support, any further moves will be stopped by the support at 0.9580, 0.9550, and 09520.

It is also important to note that any hawkish surprises from the EUR/CHF can also uplift the pair and render the ING's forecast irrelevant.

The 0.96226 handle seems to be the pivot point from where both the bulls and bears can fight for supremacy. A move above it will be a sign of bull's strength, while a move under it will mean sellers have the upper hand.

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