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FxWirePro: EUR/CHF climbs further, inches closer towards 200-DMA

EUR/CHF chart - Trading View 

EUR/CHF was trading 0.16% higher on the day at 1.0872 at around 11:05 GMT, outlook for the pair is bullish.

The single currency brushes aside poor investor sentiment index and remains bid on upbeat German Factory orders and hawkish ECB expectations. 

Further, the risk-on environment undermined the safe-haven CHF and extended support to the pair. 

Eurozone’s investor sentiment continues to deteriorate in September, the latest data published by the Sentix research group showed on Monday.

The gauge dropped to 19.6 in September from 22.2 in August vs. a reading of 19.7 expected.

On the other side, German Factory Orders unexpectedly jumped in July, suggesting that the recovery in the manufacturing sector of Europe’s economic powerhouse is gaining momentum.

German Factory Orders jumped by 3.4% in July vs. -1% expected and 4.6% last, the latest data published by the Federal Statistics Office showed on Monday.

On an annualized basis, Germany’s Industrial Orders rose by 24.4% in the reported month vs. 26.5% previous and expected growth of 13.9%. The data outpaced expectations by a wide margin.

The European Central Bank holds its policy meeting this week and a number of policy hawks have been calling for a step back in their huge asset buying programme, though President Christine Lagarde has sounded more dovish.

"We expect the ECB to announce a reduced pace of Q4 PEPP (pandemic emergency purchase programme) at its September meeting on the back of easier financial conditions," noted analysts at TD Securities.

Price action is showing a decisive break above 110-EMA and is on track to test 200-DMA at 1.0892. 
 

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