EUR/CHF Weekly Fundamental Analysis May 28 – June 1, 2012, Forecast

Introduction: News from the Euro and Swiss zone. EUR/CHF is frequently chosen for carry trades which involves going long a high-yielding currency (EURO – 3.50%) against a low-yielding one (CHF – 1.50%). Traders earn daily interest fees when holding this pair long (rollover fees). 

• The interest rate differential between the European Bank(ECB) and the Swiss National Bank(SNB)
• Swiss and Euro zone fundamentals

 

Weekly Analysis and Recommendations:

The EUR/CHF  closed the week at 1.2011 continued its private battle this week between the euro bears and the SNB with the 1.20 line in the sand it is not likely we will see any action. This week the pair hardly moved and had no correlation to world events.

The pair did jump to an unexpected high midweek, which held for just a short time, after the SNB announced the possibility of some bank action and some banking fees. After the announcement the markets returned to their tight range.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Major Economic Events for the week of May 21-25 actual v. forecast for Euro, GPB, and the Franc

  

Historical:

Highest: 1.5193 CHF on 10 Oct 2009.

Average: 1.3271 CHF over this period.

Lowest: 1.0083 CHF on 9 Aug 2011.

Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD