FXstreet.com (Barcelona) - The Swiss franc has stopped its climb respect to both the euro and the dollar during today's trading. Even so, experts say there is still a high possibility of an intervention by the Swiss National Bank to keep the Swissy in check.
The EUR/CHF halted its slide with a modest daily rise to 1.4746 at the time of writing from an opening price of 1.4746. The CHF had been gaining non-stop on the EUR ever since Dec. 16.
The USD/CHF also cut its two-day fall with a very modest push to currently trade in the area of 1.0160.
Both pairs have been horizontal during today's trading.
Even so, the overall climate still points to a stronger Swissy and therefore action by the SNB, according to the Swiss e Trade Strategy Team.
Since the beginning of the year, the Swiss franc has gained further strength [...] This development is unwelcome for Switzerland in times of a weak economy - especially against the euro, the small country's main trading partner, says the Swiss e Trade Strategy Team. The SNB, so far reluctant to act with instruments like quantitative easing, will not allow the CHF to strengthen much further. Direct interventions are a high possibility.