(MENAFN- DailyFX) DailyFX.com - r>
Talking Points:
• On Sunday Switzerland will vote on a proposal that would force the SNB to increase its gold holdings
• In the most recent opinion poll 47 percent of Swiss were against the referendum and 15 undecided
• If a 'Yes' vote the EURCHF won't simply break 1.2000...but a 'No' vote doesn't ensure a rally either
Want to develop a more in-depth knowledge on the market and strategies Check out the DailyFX Trading Guides we have produced on a range of topics.
We have one full trading day left to assess the risk in a EURCHF exposure before Sunday's Gold Referendum vote in Switzerland. Given the Swiss National Bank's primary monetary policy effort is maintaining a floor on the EURCHF at 1.2000 - accomplished by buying foreign currency and especially Euros when that level is stressed - the burden of an increased gold tab can significantly encumber the group's ability to stay its course. However that doesn't mean a 'Yes' vote will break EURCHF and offer a windfall for shorts. Nor does a 'No' vote inherently lead to a relief rally like the Pound experienced after the Scottish Referendum was voted down. We discuss this important event risk and the EURCHF's scenarios in today's Strategy Video.
Sign up for John’s email distribution list here.
original source
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.