November 7, 2012
Looks like we’re gonna be in for quite a battle between the bulls and the bears on USD/CHF! Yesterday’s price action resulted in a doji-like candle, which means that we’re seeing some indecision in the markets right now. Who will prevail, the bulls or the bears?
The SECO index came in slightly better than projected, printing at -17 once again, after it was expected to dip to -21. This indicates less pessimism amongst Swiss consumers, but also marks that 7th consecutive month that the index has printed below 0.0.
Today at 8:00 am GMT, the SNB will be releasing data on the current level of its foreign reserves. Take note that reserves have been climbing the past six months, as the SNB has been defending the EUR/CHF peg. If it turns out that reserves dropped from last month’s level of 429.5 billion CHF, it could lead to a Swissy rally, as it would indicate less interest in the SNB to protect the peg.
Later on at 8:15 am GMT, monthly CPI figures will be released. Expectations are that inflation remained steady at 0.3%. In any case, I don’t really see this as a market mover, as there hasn’t been any speculation that the SNB will be changing interest rates anytime soon.
"The only cable I watch is the pound baby."