Euro advanced to two-year high versus Swiss franc after Thomas Jordan statement

EUR/CHF pair advanced to two-year high during Wednesday trade session, after Swiss National Bank (SNB) Chairman Thomas Jordan announced that SNB would stick to EUR/CHF cap at 1.2000 and the possibility of negative interest rates if that was necessary.

The pair hit 1.2614 during afternoon session in Europe, which was highest value since May 20th 2011, then consolidation followed at levels below 1.2600. Support levels were expected at 1.2513, lowest value for current session, while the pair was to meet resistance at levels around 1.2700.

Thomas Jordan said that SNB would stick to 1.2000 cap for EUR/CHF, which could be adjusted upwards. He also added that the central bank would not rule out negative interest rates if such a measure was considered necessary. The cap on the euro was put by the SNB during September 2011 to control the appreciation of the franc as the debt crisis in the euro zone gained intensity.