- The ECB raises interest rates by 75 basis points and will continue to rise.
- The euro falls after Lagarde’s press conference.
- EUR/CHF hits 10-day lows and finds support above 0.9660.
The EUR/CHF fell after the European Central Bank meeting and after Lagarde’s press conference. The cross bottomed at 0.09661, the lowest level since August 29.
The combination of a weaker Euro and a stronger Swiss Franc in general sent EUR/CHF down sharply. The decline found support above 0.9660 and sits slightly below 0.9700, again above the 20-day Simple Moving Average currently at 0.9680.
As expected, the ECB raised interest rates by 75 basis points and said it expects more rate hikes at its upcoming meetings. Lagarde pointed out that there are more than two but less than five meetings left to reach the end of the cycle. “We expect another 75 basis point hike in October. The central bank remains relatively bullish on growth prospects. We see higher rates, a flatter curve and a weaker euro ahead,” analysts at Nordea said.
The Swiss franc was one of the best performers before the ECB decision and remained strong afterwards. USD/CHF hovers around 0.9730, for the second day in a row, at the lowest level since late August.
Technical levels
Source: Fx Street
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