Swiss Franc is trading as the strongest one for the month so far. It was boosted by SNB’s surprised 50bps rate hike earlier. Also, latest data showed that total level of the central bank’s sight deposits fell by CHF -3.37B to CHF 748.46B last week, the biggest drop since early 2012. That’s seen as a sign that SNB had halted interventions in stopping Franc’s appreciation.
GBP/CHF extended the down trend from 1.3070 and hit as low as 1.1716 so far. The break of the near term channel support is a sign of downside acceleration. But the biggest test lies in 100% projection of 1.3070 to 1.2134 from 1.2598 at 1.1662. Sustained break there could prompt even steeper selloff towards 1.1107 (2020 low). In any case, risk will stay heavily on the downside as long as 1.1969 support turned resistance holds.
