June 20, 2012
Thanks to the debt problems in the euro zone and the prospect of QE3 from the Fed, the Swiss franc was able to pocket a ton of gains in yesterday's trading as USD/CHF ended nearly a hundred pips down from its .9549 open price. Can the Swissy extend its wins today?
Although Switzerland didn't release any economic data yesterday, the Swiss franc emerged as the safe-haven of choice as demand for the U.S. dollar weakened on QE3 speculations.
Switzerland is set to release its ZEW economic expectations report today and this could have a huge impact on USD/CHF's movement. Recall that the index slipped from 2.1 to -4.0 in April, indicating that an economic downturn could be in the cards. If the May reading manages to jump back into the positive territory and hint at a more upbeat economic outlook, we could see the Swissy go for more gains. Keep an eye out for that report due 9:00 am GMT.
Don't forget that the FOMC is set to make its rate statement today and that this event could trigger a lot of volatility for the dollar pairs. Stay on your toes!
"The only cable I watch is the pound baby."