EUR/CHF soars to monthly highs above 1.0600 on risk appetite and EU fund

• Euro rises across the board on Franco-German proposal for a recovery fund.
• EUR/CHF is having the biggest daily gain in more than a year.

The EUR/CHF pair is rising almost a hundred pips on Monday supported by an improvement in market sentiment and also by the announcement of a European Union fund for the recovery. It reached at 1.0606, the highest level since April 29. 

EU recovery fund

The euro rose further during the American session after French President Macron and German Chancellor Merkel presented a plan to create a 500 billion euro recovery fund able to offer grants to those most hit by the crisis. After the announcement, EUR/CHF strengthened.

The pair was already trading higher on the back of risk appetite. Equity prices across the globe are rising sharply on optimism about a vaccine and amid a gradual reopening of many economies.

Swiss Franc under pressure

Risk appetite weakened the demand for safe-havens, including the Swiss franc. Earlier on Monday, Swiss National Bank’s Meachler denied that the 1.0500 area was an informal floor.

Sight deposits at the SNB rose to 673.5 billion francs compared to 669.1 billion of the previous week, suggesting that the central bank kept intervening to curb CHF’s strength.

Technical levels