Forex: EUR/CHF flat after positive IFO figures for Germany
FXstreet.com (Barcelona) – The euro remained virtually flat this morning after positive figures from IFO indicating that the eurozone’s biggest economy, Germany, had improved business climate, current assessment and expectations. All three readings fared better than expected.
Since September 6 the Swiss monetary authorities fixed a floor on the pair at 1.20, aiming at reducing the negative impact on exports of a strong appreciation of the national currency. The swissie, a safe haven currency, has been sought by many investors since the European crisis erupted. According to UBS, investors should pay close attention to Swiss KoF figures. A second negative reading of the indicator could trigger a bullish move towards the euro and away of the franc.
At the time of writing the cross is at 1.2054, posting a 0.02% gain, and with resistance at 1.2058, ahead of 1.2067 and 1.2073. On the downside, the cross has support at 1.2043, before 1.2037 and 1.2028 according to calculations from Fxstreet.com.