Euro Still Stuck in a Range; SNB Roth Says Do Not Rule Out Rate Hike

In a market that is flush with volatility, the Euro has become the most uninteresting currency to trade. Since the middle of last week, the EUR/USD has been stuck within a 100 pip range.

The ECB has not wavered in their hawkish tone which is a strong signal to the market that the central bank has no plans to intervene in the currency or to lower interest rates. The latest comments come from Liebscher who said that significant inflation risks remain. He is firmly convinced that Eurozone growth is ongoing and rather robust. The trade balance is the only number due from the Eurozone tomorrow – if the strength of the Euro was to have any impact on economic data, the most obvious would be trade. It is also important to note that Swiss National Bank President Roth told the markets not to rule out an interest rate hike, which should be a long term positive for the Swissie.

Written by Kathy Lien, Chief Currency Strategist for