26 Sep 2013
EUR/CHF congested below 1.2300
FXstreet.com (Athens) – The EUR/CHF is heading south today being unable to keep the support as of 1.2300.
EUR/CHF losing sight of 1.2300 on Italian political “jitters”
While the common currency was leading the fight-back against the upward creep of the dollar seen since the Fed decision in the middle of last week, the last couple of hours seems that the single currency is running out of fuel. Majors drivers regarding the downward pressure on the pair, could be well attributed to Euro land data, as well as on Italian political backdrop. data revealed that the annual growth rate of loans to the private sector originated by banks fell from -1.4% in July to a new record low of -1.5% in August. In addition, the net monthly flow of loans to the private sector remained negative at €-8bn. What’s more, annual growth in M3, the broad money supply measure watched by the ECB as an early warning of future inflation, remained sluggish at 2.3%, dragging the pair further down. Last but not least, news wires saying that “News that Berlusconi's party might bail on the ruling coalition if Silvio is ejected from Parliament”, put a further pressure on the pair.
Technical Outlook and Strategic Bias on EUR/CHF
Gareth Berry Strategist in UBS suggests that “Resistance is at 1.2346 ahead of 1.2415. Strong support is at 1.2268 ahead of 1.2219.”
EUR/CHF losing sight of 1.2300 on Italian political “jitters”
While the common currency was leading the fight-back against the upward creep of the dollar seen since the Fed decision in the middle of last week, the last couple of hours seems that the single currency is running out of fuel. Majors drivers regarding the downward pressure on the pair, could be well attributed to Euro land data, as well as on Italian political backdrop. data revealed that the annual growth rate of loans to the private sector originated by banks fell from -1.4% in July to a new record low of -1.5% in August. In addition, the net monthly flow of loans to the private sector remained negative at €-8bn. What’s more, annual growth in M3, the broad money supply measure watched by the ECB as an early warning of future inflation, remained sluggish at 2.3%, dragging the pair further down. Last but not least, news wires saying that “News that Berlusconi's party might bail on the ruling coalition if Silvio is ejected from Parliament”, put a further pressure on the pair.
Technical Outlook and Strategic Bias on EUR/CHF
Gareth Berry Strategist in UBS suggests that “Resistance is at 1.2346 ahead of 1.2415. Strong support is at 1.2268 ahead of 1.2219.”