The EUR/CHF pair continues to see an overall positive grind, but with the ECB rate decision tomorrow, it makes sense that it pauses a bit in Wednesday trading.
EUR/CHF
The euro initially tried to rally against the Swiss franc during trading on Wednesday but gave back those gains to settle around the 0.94 level yet again. This is an area that has been important a couple of times in the past, and it looks set to remain so.
Top Regulated Brokers
Ultimately, this is a very interesting pair for me at the moment, as the European Central Bank has an interest rate decision coming out on Thursday. The idea that the Europeans might be raising rates is the standard orthodoxy of the market right now, but overall it is probably worth noting that there is a little bit of pushback in the form of Swiss GDP and inflation coming in a little hotter than anticipated recently.
The carry is still very positive for the euro in this market
Nonetheless, the carry is still very positive for the euro in this market, and I look at any pullback as a potential buying opportunity. In this strong uptrend, you get paid at the end of every session, and therefore it is likely to continue to attract a certain amount of momentum just because of that.
This market is certainly bullish, but we could be watching some people out there getting out of their positions ahead of the volatile ECB announcement and press conference. With that, I am looking at this as a potential buy-on-the-dip scenario. This is one of my favorite carry trade pairs, and with some “risk on” type of news, is one of the first places I look to get involved, as money leaves the safe haven of Switzerland for deployment into faster growing economies.
Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.