Forex - EUR/CHF moves higher as SNB intervention talk weighs
Investing.com
Published Aug 22, 2011 09:00AM ET
EUR/CHF hit 1.1373 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.1353, gaining 0.44%.
The pair was likely to find support at 1.1148, the low of August 15 and resistance at 1.1554, the high of August 15 and a three-week high.
Earlier in the day, Swiss daily newspaper SonntagsZeitung reported that the Swiss Cabinet expects the SNB to set an exchange-rate target of at least 1.2 francs per euro, without identifying a source for the information.
Meanwhile, Swiss President Micheline Calmy-Rey said an “energetic” approach was needed to curb the rise of the Swiss franc, adding that the cabinet saw the franc as “clearly overvalued.”
But the euro’s gains remained limited after German Chancellor Angela Merkel reiterated her opposition to calls for the euro zone to issue joint euro-denominated bonds as a way for indebted euro zone states to borrow.
The euro was also higher against the yen, with EUR/JPY climbing 0.53% to hit 110.76.
Also Monday, Japan’s Finance Minister Yoshihiko Noda reiterated a warning against pushing the value of the yen up, saying "We will watch markets even more closely than before to see whether there is any speculative activity. We won't rule out any measures and will take decisive action when necessary”
Japanese officials last intervened to weaken the yen on August 4 in an attempt to protect Japan’s largely export-driven economy.
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Written By: Investing.com
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