EUR/CHF hits multi-day highs above 0.9900

• EUR/CHF adds to Friday’s rise above 0.9900.
• The upbeat tone of the risk complex fuels the crossover.
• The ECB’s Lagarde said high inflation will persist for longer.

The best tone in the universe associated with risk motivates the EUR/CHF to extend last week’s recovery above the 0.9900 barrier on Monday.

EUR/CHF bets on risk appetite

EUR/CHF advances for the second session in a row and manages to recapture the zone above 0.9900 amid an auspicious start to the new trading week.

In fact, concerns about the banking sector in the old continent seem somewhat eased in response to the news related to UBS and Credit Suisse, although this does not prevent the latter’s shares from plummeting almost 60% at the beginning of the week.

In general terms, the better tone of the risk complex helps the cross to recover the barrier of 0.9900 and beyond, and to reach new highs of 2 weeks, against the background of another negative session in the dollar.

Regarding the single currency, President C.Lagarde reiterated that there is no compromise between prices and financial stability, adding that the central bank could provide liquidity if necessary. In addition, Lagarde pointed out that interest rates remain the exclusive tool for setting monetary policy, while insisting on the persistence of high inflation and highlighting the ECB’s data-dependent stance when deciding on rates.

technical levels

At time of writing, the cross is up 0.49% at 0.9917 and faces next resistance at 1.0041 (March 2 monthly high) before 1.0097 (Jan 13 2023 high) and therefore last, 1.0514 (monthly high of June 9, 2022). To the downside, a break of 0.9842 (200-day SMA) would expose 0.9705 (2023 low on Mar 15) and then 0.9643 (weekly low on Oct 12, 2022).