- The Swiss franc is gaining momentum in the last few hours.
- EUR/CHF in historical low zone.
- Inflation rate differential between Switzerland and the Eurozone favors the franc.
EUR/CHF broke below 0.9700 and fell to 0.9668, marking a record low. The pair remains under pressure and with no signs of recovery at the moment.
The EUR/CHF pullback reflects the strength of the Swiss franc in the market. While USD/CHF remains in range with no big moves, EUR/USD falls below 1.0300.
The difference between inflation in the Eurozone and Switzerland continues to be a factor in favor of the Swiss franc. The appreciation path could lead to some sort of threat from the Swiss National Bank authorities. Although, with the current inflationary context, this time, the rise of the CHF has something positive.
In weekly terms, EUR/CHF is on track for the lowest close in history. In the last nine weeks, the euro will have lost ground in eight. The rise in the cross last week has already been left behind. The strength of the euro proved to be only temporary.
Technical levels
Source: Fx Street
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