Forex: CHF ends incredible week with moderate losses across the board

FXstreet.com (C�rdoba) ? The Swiss Franc experienced a historic week as it reached new record highs in the market with an impressive rally but then reversed sharply and turned lower, erasing an incredible amount of gains, to end slightly lower across the board as speculations about a peg to the Euro circulated in the financial world and following new measures from the SNB to curb the strength of the currency.

USD/CHF ended the week with small gains, hovering above 0.7700, after rising 670 pips from the lows. The pair experienced the worst and the best daily performances in months during the week. It fell more than 350 pips on Tuesday amid market turmoil and rose and equal amount of pips on Thursday.

EUR/CHF ended the week almost a thousand pips above record lows that were reached on Tuesday at 1.0050/70. Market analysts were speaking about the pair headed toward parity but peg rumors triggered a gigantic rally and the Euro rose back above 1.1000. According to Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman the next technical retracement objective for the pair comes near 1.1200.

From a fundamental perspective, Chandler affirmed that the best thing for Switzerland, ?could be a global equity market recovery and for the Merkel-Sarkozy meeting to take fresh, market convincing initiative.?

?The violent squeeze on long CHF positions has had powerful ripple effects on other currencies as crosses are also forced to unwind, not just euro-Swiss or dollar-Swiss,? he added regarding the Swiss Franc.

Source: http://www.fxstreet.com/news/forex-news/article.aspx?storyid=2aaf27e9-7a7b-4917-8846-19b5982d8f1e

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