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EUR/CHF tests lows on steady SNB

FXStreet (Edinburgh) - The Swiss franc is now picking up pace vs. the common currency, dragging EUR/CHF to challenge daily lows near 1.0950.

EUR/CHF deflates on SNB

The cross is losing momentum following the steady stance of the SNB at its monetary policy meeting today, matching the broader consensus. The Alpine central bank left unchanged the target for the 3-month Libor between -1.25% and -0.25% and the rate on sight deposits at -0.75%.

As usual, the central bank argued it remains committed to act in the FX markets if needed and it will keep monitoring the performance of the exchange rate and its impact on domestic prices and economic growth.

Previously, the Swiss government has lowered its projections for 2015 inflation to -1.1% and it now sees the economy growing a tad lower during the current year at 0.9% and 1.5% in 2016.

EUR/CHF relevant levels

At the moment the cross is losing 0.07% at 1.0959 with the next support at 1.0922 (low Sep.10) ahead of 1.0878 (low Sep.9) and finally 1.0832 (low Sep.7). On the other hand, a break above 1.1011 (high Sep.15) would aim for 1.1049 (high Sep.11) and then 1.1100 (psychological level).

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