EUR/CHF Tests Support Ahead of ECB Rate Decision

The EUR/CHF pair continues to trend upwards, but it's experiencing some hesitation ahead of the ECB rate decision on Thursday. The euro initially attempted a rally against the Swiss franc on Wednesday, but these gains were short-lived and the pair settled back around the 0.94 level.

This is an area that has been significant in the past, and it's likely to remain so for now. Despite some pushback from recent Swiss GDP and inflation data coming in higher than expected, the market's consensus view is still that the European Central Bank will raise interest rates.

Currency traders are seeing a positive carry on the euro in this market, which makes pullbacks like this an attractive buying opportunity for those with a strong trend following strategy. With the potential for volatility around the ECB announcement and press conference on Thursday, some may be taking profits ahead of time.