Forex Market Update:Euro-Franc Holds Range Ahead of the Swiss National Bank Rate Deci

[B]EUR/CHF remained range bound ahead of the SNB decision[/B] and traded within close proximity to the recent 1.5050 lows. This is around the low of the week, but there has been little further progress on the downside in to the 7:30GMT decision. The cross has not traded under 1.5000 since the Bank intervened in March, at its last policy meeting. European traders have flagged stops building below 1.5040 over the last few sessions and larger interest noted below 1.5000 and 1.4980. Some players suspect that central bank or supranational name interest could come in ahead of 1.5000, which was the case in mid-May and led to a decent short covering rally. It is unlikely that 1.5000 will be seriously challenged unless the Bank fails to mention FX in its statement. We expect the SNB to maintain a steady Libor rate and confirm its commitment to limiting further swissy gains, along with other non-standard policy measure, which include outright bond purchases.

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