EURCHF shaken violently by decision of the Swiss National Bank to lower interest rate at -0,75%

The volatility has shaken violently to CHF pairs, but specifically the EURCHF, which is having an intraday fall of approximately 14.90% of its value.

This is due to the decision of the Swiss National Bank to lower the interest rate to -0.75%, which is within 3-month LIBOR target range that was set between -0.25% and -1.25%.

The SNB said in a press release that this is a “temporary and exceptional measure” because of the high level of uncertainty that exists in the financial markets and the overvaluation of the Swiss franc.

“The SNB is lowering interest rates to ensure that significantly the discontinuation of the minimum exchange rate does not lead to an Inappropriate tightening of monetary conditions “, SNB quotes in a press release.

At a technical level and based on the current strong bearish bias, the EURCHF could find support at the level of 1.0060, which is a low level that has not been visited since 2011.

Furthermore, in case this pair make a breakout at that level, the next target would be the 0.8052 level, which is another low level of 2011-year.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @conexiondigicol

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Felipe Erazo

• 

  Windsor Brokers

• 

  The OMG Team

• 

  Mercedes Van Essen