The swiss franc weakened against the euro as the EURCHF rate bounced to 1.0496 from 1.0468 ( 28 pips) on the statement of the SNB President Jordan in a press conference in Lausanne. One part of his statement in particular gave reaction to the market; "The swiss franc is clearly overvalued, and that the SNB is ready to intervene in the FX Market." Although that was a rather repeat rhetoric, nontheless it pushed the EURCHF 28 pips higher to 1.0496 close to the 1.0500 mark. Eager sellers capped the rise.
The Swiss National Bank President, Thomas Jordan said that he expects growth in the Swiss economy in the second quarter of the year. He said that inflation will not stay below zero for long. He adds that the SNB is expecting the global economy to accelerate and will cushion the impact of the swiss franc exchange rate overvalued appreciation.
The EURCHF trading range has been narrow on the intraday chart (1.0475 - 1.0443) from the prior session of NY to early Europe. The 1.0475 resistance was broken immediately after the bullish comments from SNB Jordan. The next resistances: 1.0500, 1.0512, 1.0524, 1.0535. Supports: 1.0450, 1.0440, 1.0425, 1.0404.
Charts: WorldWideMarkets Alpha Trader