The euro is having an awful time in trading this week as it sinks across the board against the rest of the major currencies bloc.
Russian sanctions are biting hard at Europe, adding to worries about rising energy costs and inflation that will grip consumption, not to mention that there has been no firm communique from the ECB on policy setting. The latest inflation data this week won't help as it only reaffirmed that stronger price pressures look to be more persistent.
With EUR/USD set for its biggest weekly drop since April 2020, EUR/CHF is also tumbling lower and is trading back at levels last seen in January 2015 - when the SNB pulled the rug from under the market.
From a technical perspective, there isn't anything much else standing in the way of a move towards parity. So, at this point, the only real decisive factors in my view will be potential ECB jawboning next week and SNB intervention to counteract the franc's "strength".
Even though we can expect the ECB to do something next week, I would argue that the SNB may have the bigger impact when it comes to influencing the pair - when the time calls for it of course.
For now though, with the euro sinking across the board, it is tough to fight against that momentum and Jordan & co. may also want to save their ammunition for an easier time to intervene.
