Investing.com - The euro was almost unchanged against the Swiss franc on Tuesday, after the acting head of the Swiss National Bank Thomas Jordan said the bank’s policy in relation to its minimum exchange rate floor against the euro was unchanged, after the level was briefly breached last week.
EUR/CHF hit 1.2030 during European afternoon trade, the pair’s highest since April 5; the pair subsequently consolidated at 1.2020, inching up 0.01%.
The pair was likely to find support at 1.2000, the level of the exchange rate cap imposed by the SNB in September and short-term resistance at 1.2039, the high of April 5.
Last Thursday, EUR/CHF briefly fell below the SNB’s intervention level to hit 1.1997.
Speaking earlier, Jordan said the trade occurred in “a segmented market,” before adding that the situation “was remedied within seconds by means of arbitrage."
Jordan reiterated that the SNB is ready to defend the 1.20 minimum exchange rate with all available means and remained prepared to buy foreign currency in unlimited quantities, but acknowledged that such breaches of its minimum exchange could reoccur.
Jordan also said that the franc remains overvalued and continues to pose a substantial risk to the Swiss economy, but indicated that policymakers do expect it to weaken in time.
The Swissie was higher against the U.S. dollar, with USD/CHF slipping 0.13% to hit 0.9159.
The SNB imposed the 1.20 per euro exchange rate on the franc on September 6, amid concerns over the impact of the strong currency on Switzerland’s economy and to ward off the risk of deflation..
EUR/CHF hit 1.2030 during European afternoon trade, the pair’s highest since April 5; the pair subsequently consolidated at 1.2020, inching up 0.01%.
The pair was likely to find support at 1.2000, the level of the exchange rate cap imposed by the SNB in September and short-term resistance at 1.2039, the high of April 5.
Last Thursday, EUR/CHF briefly fell below the SNB’s intervention level to hit 1.1997.
Speaking earlier, Jordan said the trade occurred in “a segmented market,” before adding that the situation “was remedied within seconds by means of arbitrage."
Jordan reiterated that the SNB is ready to defend the 1.20 minimum exchange rate with all available means and remained prepared to buy foreign currency in unlimited quantities, but acknowledged that such breaches of its minimum exchange could reoccur.
Jordan also said that the franc remains overvalued and continues to pose a substantial risk to the Swiss economy, but indicated that policymakers do expect it to weaken in time.
The Swissie was higher against the U.S. dollar, with USD/CHF slipping 0.13% to hit 0.9159.
The SNB imposed the 1.20 per euro exchange rate on the franc on September 6, amid concerns over the impact of the strong currency on Switzerland’s economy and to ward off the risk of deflation..