By FXEmpire.com
The EUR/CHF pair continues to grind sideways as the week ended up essentially unchanged. There were two weird spikes in the pair during the week though, and as a result there was some action to be had in the market for once.
The spike was based upon rumors of new deposit taxes in Switzerland. The idea that investors would suffer a penalty for bringing money into the country of Switzerland is indeed a bit of a stretch, but as the Franc is so overbought, something like this may actually have to happen in order to push prices well above the mandated 1.20 floor in the pair by the Swiss National Bank. Obviously, there are no long-term trades in this pair.
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Originally posted here
