Yesterday we saw tensions in Ukraine rising as Ukraine’s president said that Russian troops had entered Ukraine territory. This helped safe haven currencies (CHF and JPY) to push higher against counter currencies.
EUR/CHF is now trading at 1.2052, very close to 1.20 that Swiss National Bank set as floor to the currency and is willing to protect. The Euro was lower against the Japanese Yen as well, trading as low as 136.40 yesterday. The pair has been consolidating near its yearly lows for the past month and the next support level can be found at 135.71 (August low).
Other Euro crosses seem in bearish formation with EUR/USD and EUR/GBP challenging recent lows yesterday and this morning, ahead of Eurozone inflation figures about to be released at 09:00 GMT. Consensus for the YoY inflation figures is at 0.8% and the figure is well expected from market participants as the data will be watched very closely by ECB ahead of the monetary policy meeting held next week.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Safe haven currency demand – Euro under renewed pressure
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