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2 May 2013
Forex: EUR/CHF flat around 1.2225/30
FXstreet.com (Barcelona) - The Swiss franc is losing ground against the single currency on Thursday, ahead of the ECB interest rate decision due later. “The ECB announce policy today and 60% of those surveyed by Bloomberg say they cut 25bp. This is the first time for a while that the consensus has swung in favour of a cut. Up until now, despite the deteriorating economic and lower inflation outlook, rate cut expectations have been seen as an outside chance only”, argued G.Gibbs, FX Strategist at RBS.
The weaker Swiss franc comes as a surprise after the improvement of the SVME-PMI for April in the Alpine economy, climbing to 50.2 from 48.3 and 49.0 forecasted.
The pair is now up 0.03% at 1.2227 with the next hurdle at 1.2263 (high May 1) ahead of 1.2312 (high Apr.26) and then 1.2349 (high Apr.25).
On the downside, a violation of 1.2214 (MA21d) would bring 1.2151 (MA200d) and finally 1.2086 (low Jan.10).
The weaker Swiss franc comes as a surprise after the improvement of the SVME-PMI for April in the Alpine economy, climbing to 50.2 from 48.3 and 49.0 forecasted.
The pair is now up 0.03% at 1.2227 with the next hurdle at 1.2263 (high May 1) ahead of 1.2312 (high Apr.26) and then 1.2349 (high Apr.25).
On the downside, a violation of 1.2214 (MA21d) would bring 1.2151 (MA200d) and finally 1.2086 (low Jan.10).