1.0800 should prove good intraday resistance – ING

EUR/USD is drifting within a range. ING economists analyze the outlook for this pair.

EUR/CHF should head towards 0.9500/0.9600.

It is doubtful whether EUR/USD will rise before Friday’s US CPI revision. This means that 1.0800 should prove to be good intraday resistance.

The slightly higher interest rate environment has caused the EUR:CHF 2-year swap differential to widen again to 188bps, supporting EUR/CHF. There must be more to this and we wonder if speculation is building about a Swiss National Bank rate cut in early March. We remain of the view that EUR/CHF should head towards 0.9500/0.9600.