FxWirePro short term outlook: EUR/CHF short side risk-reward 1:4

European Central Bank (ECB) maintained status-quo in yesterday’s monetary policy meeting in Vienna but the packages already announced can take toll over Euro and already is. As corporate bond purchases kick-off this month and four new TLTROs to follow, ECB balance sheet will expand more than any other central banks in the world, surpassing both FED and Bank of Japan (BOJ).

Moreover, raging refugee crisis and protests against refugee deal with Turkey continue to weaken Europe, as well as Euro, fundamentally.

On the other hand, Swiss National Bank (SNB) is unlikely to expand its balance sheet further and push rates further into the negative. Moreover recent cautious global environment, where growth is structurally weak, Franc is with an upper hand to Euro, over its safe haven status.

In addition to that a British exit from the Union, would be negative for Euro and positive for Franc.

Under such ongoing fundamental, we expect Franc to strengthen against Euro, over the near term.

Trade idea –

• Sell Euro against Franc at current rate 1.105, with stop loss around 1.118 and targets around 1.08 and 1.05 areas.