By FXEmpire.com
The EUR/CHF pair did almost nothing on Monday as the market continues to respect the wishes of the Swiss National Bank. The SNB has put in a “minimum acceptable exchange rate” of 1.20 to the Euro for the Franc, and as such this pair is essentially “stuck” at this level. Of course, if Europe could ever get their collective act together, this would be a great long.
In the meantime, we only see the chance of buying this pair to collect the slightly positive swap. If the pair breaks down, the Swiss National Bank will intervene, pushing prices much higher. If the situation in Europe gets better – however unlikely that may seem – the pair will also rise as well. In the meantime, we don’t expect much in the way of volatility.
Click here a current EUR/CHF Chart.
Originally posted here
