Investing.com – The euro was up against the Swiss franc on Thursday, surging to a fresh 4-week high, after the Swiss National Bank revised down its inflation expectations for 2010 and 2011.
EUR/CHF hit 1.3302 during European afternoon trade, the pair’s highest since August 19; the pair subsequently consolidated at 1.3253, jumping 1.51%.
The pair was likely to find support at 1.2872, the low of September 14, and resistance at 1.3401, the high of August 19.
Earlier in the day, the Swiss National Bank said in a monetary policy statement that it lowered its inflation expectations for 2010 to 0.7% down from 0.9%, and from 1% down to 0.3% for 2011.
The bank said that “Uncertainty about the future outlook for the global economy remains high. Economic recovery is not yet sustainable and downside risks predominate”.
The Swissy was also down against the U.S. dollar, with USD/CHF soaring 1.06% to hit 1.0139.
Earlier Thursday, Spain successfully raised EUR 4 billion euros with an auction of 10 and 30 year Treasury bonds. The country’s borrowing costs also fell.
EUR/CHF hit 1.3302 during European afternoon trade, the pair’s highest since August 19; the pair subsequently consolidated at 1.3253, jumping 1.51%.
The pair was likely to find support at 1.2872, the low of September 14, and resistance at 1.3401, the high of August 19.
Earlier in the day, the Swiss National Bank said in a monetary policy statement that it lowered its inflation expectations for 2010 to 0.7% down from 0.9%, and from 1% down to 0.3% for 2011.
The bank said that “Uncertainty about the future outlook for the global economy remains high. Economic recovery is not yet sustainable and downside risks predominate”.
The Swissy was also down against the U.S. dollar, with USD/CHF soaring 1.06% to hit 1.0139.
Earlier Thursday, Spain successfully raised EUR 4 billion euros with an auction of 10 and 30 year Treasury bonds. The country’s borrowing costs also fell.