EUR/CHF drops back toward 1.0700

EUR/CHF is falling today after rising during the previous five trading days. The pair dropped to 1.0700 erasing most of the recent gains. 

Yesterday price peaked at 1.0761 (1-week high) and pulled back modestly. Today during the Asian session the euro approached 1.0760 but turned to the downside. It dropped sharply during the European session and bottomed at 1.0700. From the lows, bounced modestly to the upside and it was trading at 1.0710. 

EUR/CHF another year lower; will 2017 be different?

The Swiss franc is about to end the year with a 1.30% gain against the euro. EUR/CHF traded in positive territory most of the year, but in November, worries about Italian financial system, the extension of the QE program from the ECB and the Trump effect pushed the pair to the downside. It is the third yearly decline in a row for the euro, that since 2008, it only gain in 2013. 

“The litany of European political risks next year, coupled with the potential for global market volatility from rising US dollar and US yields, suggests that CHF should stay supported in 1H17, but gradual euro strength in the latter half of the year should help drive EUR/CHF back towards the recent 1.12 high”, said Alvin Tan, Research Analyst at Societe Generale.