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EUR/CHF holds losses as France fiscal concerns weigh on the euro

EUR/CHF was around 0.9318 after reaching a 0.9272 intraday low, and the pair remains above the 100-day SMA.

Reported · Written up by our desk · Major Pairs

EUR/CHF was holding modest losses on Monday as growing fiscal concerns in France weighed on the euro, according to FXStreet. The cross had reversed much of its intraday decline, but buying interest in the Swiss franc (CHF) stayed limited, FXStreet reported.

FXStreet said the Swiss franc is not seeing strong demand because Switzerland has a wide interest-rate gap versus other major economies, and the Swiss National Bank is seen as ready to counter excessive franc strength. At the time of writing, EUR/CHF traded near 0.9318 after hitting an intraday low of 0.9272.

FXStreet also cited strategists at Brown Brothers Harriman saying the euro is underperforming major peers, including a brief move in EUR/USD to an intra-day low of 1.1161. The outlet linked the broader pressure to concerns that France’s budget crisis is spilling into other Eurozone sovereign bond markets and widening yield spreads to Germany.

On the technical front, FXStreet said EUR/CHF was under renewed selling pressure after a rejection around 0.9480 and had fallen below the 50-day simple moving average at 0.9387. It noted the pair remains above the 100-day SMA at 0.9297 and the 200-day SMA at 0.9239.

Latest closeEUR/USD 1.126 ▼0.6%

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