- Swiss franc under pressure due to strong advance in stocks.
- EUR / CHF has the best day in months, going from lows to highs in months.
The EUR / CHF spiked from levels below 1.0700 towards the 1.0800 zone, a matter of hours after knowing a result on the tests of the Pfizer vaccine. That made world stock markets rise sharply, weakening the demand for safe haven assets, including the Swiss franc.
The yen, gold and franc are among the assets that have fallen the most. While on Wall Street the Dow Jones climbs more than 6%. Optimism about the advance of the vaccine, which could lead to helping economies around the world generated strong movements.
Given this, the EUR / CHF went from trading near lows since July to climbing to 1.0797, the highest in a month. The crossover remains close to the highs, with the moment intact.
The The advance was made by the rise of the USD / CHF and not by a rally of the EUR / USD. The EUR / USD rises but not at the same rate as the other pair that is climbing 70 pips.
Technical levels
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Credits: Forex Street
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