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25 Apr 2013
Forex Flash: All eyes on USD/CHF as European economies eyed – UBS
FXstreet.com (Barcelona) - The recent price action surrounding the EUR/CHF has the renewed weakness of the franc this week - at a time when the dataflow has showed the Eurozone's largest economy clearly slowing – may reflect concerns about Germany as much as unsubstantiated speculation about the SNB's exchange rate regime.
“Investors should therefore pay close attention to the franc. Further declines in Switzerland's currency would show that Germany and the rest of the stronger core economies in Europe are being adversely affected by the Eurozone's weaker peripheral members.” writes the UBS Research Team.
If the USD/CHF in particular breaks through key resistance levels between 0.95-0.9600 it would point to the greenback making gains now against the healthier core European economies and not just the Eurozone overall. “That would be a bullish development for the greenback.” they add.
“Investors should therefore pay close attention to the franc. Further declines in Switzerland's currency would show that Germany and the rest of the stronger core economies in Europe are being adversely affected by the Eurozone's weaker peripheral members.” writes the UBS Research Team.
If the USD/CHF in particular breaks through key resistance levels between 0.95-0.9600 it would point to the greenback making gains now against the healthier core European economies and not just the Eurozone overall. “That would be a bullish development for the greenback.” they add.