COZforex: The Swiss franc slipped lower against the euro and the broadly stronger dollar on Thursday after the Swiss National Bank left rates on hold and said it was maintaining its exchange rate floor against the euro.

EUR/CHF edged up 0.10% to 1.2196, from session lows of 1.2177 ahead of the announcement. The pair is expected to find support at 0.8752, and a fall through could take it to the next support level of 0.8692. COZforex senior currency strategist Ian • Quigley said, EUR/CHF is predicted to find its first resistance at 0.8851, and a rise through could take it to the next resistance line of 0.8890.

The euro moved higher after the SNB reiterated it would enforce the 1.20 per euro minimum exchange rate floor with unlimited interventions if necessary, and added that it remained ready to take further measures.

The SNB put the exchange rate floor in place in September 2011 after the franc almost reached parity with the euro, amid concerns over the impact of a strong franc on the Swiss economy, and in particular on exports.

The central bank also kept its benchmark interest rate unchanged at 0.0% to 0.25%, in line with forecasts.

The SNB confirmed its forecast that the Swiss economy will grow by around 2.0% in 2014. It revised down its inflation forecast, saying consumer prices will remain flat this year and rise 0.4% in 2015.


(COZ forex UK)