What a way to close to week! The Swissy beat the greenback to a pulp to end the week on a high note. The USDCHF fell to and settled at 1.0657 from 1.0738.
Most anti-dollars like the Swissy rallied in last Friday’s session when a report from Reuters showed that top officials in the euro zone have already agreed on an aid plan for Greece.
This week is a little bit bare for Switzerland with only the release of its March PPI on Friday. Producer prices in Switzerland are seen to have gained by 0.2% in March after dropping by 0.3% in the month prior. A gain in PPI could reflect in the country’s inflation as well since most increases in input prices are usually transferred to consumers. A rise in the figure, therefore, could be bullish for the Swissy.
After gapping down more than 70 pips over the weekend, the USDCHF found itself stuck within an 80 pip-range in yesterday’s trading session. The pair ended the day at 1.0595, hardly changed from its week open price of 1.0588.
No data coming out today, so the USDCHF’s movement end up very similar to yesterday’s. Watch carefully if those previous day highs and lows hold!
Despite the lack of any economic data yesterday, the franc came out ahead, posting some nice gains versus both the dollar and the euro. Both the USDCHF and EURCHF closed more than 50 pips lower from their opening prices.
Once again, nothing on the [=¤cy[]=AUD¤cy[]=CAD¤cy[]=CHF¤cy[]=EUR¤cy[]=GBP¤cy[]=JPY¤cy[]=NZD¤cy[]=USD&importance[]=&importance[]=3&importance[]=2&importance[]=1&submit=Submit"]economic calendar](Forex Economic Calendar[) for Switzerland, but that doesn’t mean we won’t see any strong moves in trading today. Watch out for any news coming out of Europe, especially concerning Greece, as any strong moves in the EURUSD pair could carry franc trading along with it. Also, take note that we’ve got some top tier data coming out from the US, which could lead to some volatility during the US session.
The USDCHF tiptoed towards the 1.0500 handle yesterday as the US dollar responded negatively to Bernanke’s downbeat speech. Switzerland did not release any economic reports in the past 24 hours but let’s take a look at what it has in store for today.
Once again, Switzerland has an empty economic schedule for today but SNB Governing Board vice-chairman Thomas Jordan is scheduled to testify on financial regulation at 5:30 pm GMT. Although this speech is slated to have a minimal effect on the Swissy’s price action, traders usually listen closely for hints regarding the central bank’s future monetary policy decisions.
Also keep an eye out for the release of several top-tier reports today. China is set to release its quarterly GDP, which could boast of an 11.8% expansion, and this could have a large effect on risk appetite. Meanwhile, the US is set to release its industrial production report along with a couple of manufacturing indices later today.
The Swissy encountered a minor hump in yesterday’s trading as it closed at the negative side of the stick against the greenback. The USDCHF rebounded to 1.0561 from 1.0516.
No economic reports came out of Switzerland yesterday. The Swissy lost some support when the US printed a worse than expected initial jobless claimsfigure of 484,000 for the week ending April 10. It was only seen to be at 439,000.
Today (7:15 am GMT), Switzerland’s producer price index (PPI) in March will be on deck. Producer prices likely rose by 0.2% in March after dipping by 0.3% in February. An increase in input prices could also reflect on the country’s inflation since such are usually transferred to end users. A jump in the account, therefore, could be bullish for the Swissy.
For the second day in a row, the Swissy found itself giving up some ground against the US dollar last Friday. Just like other major currencies, the main reason the Swissy took a dive was from the wave of risk aversion that came from the Goldman Sachs debacle. All in all, however, the USDCHF ended the week hardly changed, rising a mere seven pips from its opening price that week.
No data coming out of Switzerland today so we could see the Swissy’s price action be bound by the previous day’s highs and lows.
Tight trading yesterday, as traders took a breather after all the big moves last Friday. The USDCHF stayed within a range of just 80 pips, closing 7 pips lower.
With no major data coming out from Switzerland, franc trading will probably be dictated by the movements of the euro. Several euro zone reports will be released today, so we could see wilder moves today as compared to yesterday. Be on the lookout for more news regarding Greece, as well as any developments on the Goldman Sachs case. These two issues are weighing heavily on the markets, and could trigger wide spread risk aversion if any surprises break out.
The Swissy slipped again versus the greenback in yesterday’s trading. The USDCHF rose to and closed at 1.0682 from 1.0631. The pair appears to be on an uptrend for the last week. Though, it might find some resistance at this month’s high of 1.0787.
No economic data were released in Switzerland yesterday. Despite the 0.3% in gold prices, the Swissy still dipped. Remember that the Swissy has a strong correlation on the price of gold since around 25% of Switzerland’s money is backed by gold reserves. So usually when gold goes up, the Swissy gains as well and vice versa.
Today, Switzerland’s economic calendar will be report free again. Given this, the Swissy could just trade in a range-bound fashion.
The Swissy was placed on an uncomfortable spot again yesterday versus the greenback. The USDCHF extended its gains as it rose to 1.0700 from 1.0682. The question now is: Will the Swissy be able to recover?
Switzerland did not release any economic reports yesterday. The unexpected rise (8.0% from 7.8%) in the UK’s unemployment rate, however, caused the investors to be risk averse, leading them to buy up the safer currencies like the greenback in exchange for others like the Swissy. After dipping, the Swissy then just ranged during the rest of the session.
Today, Switzerland’s trade balance will be due at 6:15 am GMT. The country’s trade surplus likely expanded to CHF1.79 billion in March from CHF1.29 billion. An expansion in its trade balance could mean that its exports for the last month has improved. Such could give the Swissy a much needed boost.
Just like the euro, the Swiss franc received a serious beating from the dollar in yesterday’s trading session. The USDCHF ended the US trading session at 1.0767, almost 70 pips higher from its Asian session open price.
Data released from Switzerland yesterday was mixed, though it did not garner much attention. In any case, the country’s trade balance revealed a 2.01 billion CHF surplus for the month of March, higher than the previous month’s positive 1.29 billion and better than the 1.79 billion initially projected. Meanwhile, the ZEW economic expectations survey came out with a reading of 53.4 for this month, slightly lower than the last month’s reading of 53.8.
The Swiss franc has already lost three straight days against the dollar…. Hmm, could today be the day the bears take profit? Be careful out there, especially when the European trading session draws to a close!
It looked as if the franc was going to take another beating against the dollar, but luckily, it got a boost from the neighboring euro. As the EURUSD pushed higher, this allowed the CHF bulls to ride along, which led to the USDCHF closing over 100 pips lower from its high for the day.
No data on deck today, so look for CHF trading to be dictated by how the EURUSD trades today. Remember, the euro and the franc are highly correlated, which is why the franc gets dragged along whenever the euro makes strong moves.
Watch out later this week, when SNB Chairman Philipp Hildrebrand will be speaking at the General Meeting of Shareholders in Bern. It’ll be interesting to see whether he talks about the value of the franc or drop any comments about interest rates.
The Swiss franc edged lower against the greenback yesterday, causing the USDCHF to hit a high of 1.0788. No economic reports were released from both the US and Switzerland yesterday.
Today, Switzerland is set to release its UBS consumption indicator, which is a combined reading of five consumer-related indicators such as consumer confidence and retail sales. Last February, the indicator dipped from 1.36 back to 1.20, implying that consumer conditions worsened during the month. Would it be able to bounce back in March? Find out at 6:00 am GMT.
Aside from checking out those economic reports, watch out for developments concerning the Greek bailout and Goldman Sachs investigation since these could have an impact on risk sentiment. Be careful out there!
Ouch! A wave of risk aversion sent the Swissy back on the sidelines against the greenback yesterday. The USDCHF jumped to 1.0875 from 1.0739. After yesterday’s nasty slide, will the Swissy be able to rebound?
Switzerland’s UBS consumption indicator rose sharply to 1.71 in March from 1.20, indicating that domestic consumption at least for the period has increased significantly. Such growth can be credited to the 20% rise in car registrations.
What sent the Swissy sliding against the greenback was the credit downgrade of Greece and Portugal by Standard and Poor’s. S&P lowered Greece’s debt rating to junk. The same agency also reduced Portugal’s debt ranking two levels lower to A-. The simultaneous downgrades of the two countries mentioned sparked fears of a continent-wide debt crisis.
No economic reports are due today in Switzerland. Any development, though, from the euro zone, particularly in Greece and Portugal, could cause some volatility in the major currencies like the Swissy.
The lack of hard-hitting economic news kept the Swissy’s price action range bound yesterday. The USDCHF just bounced around its session highs and lows, ending the US trading session barely changed at 1.0860.
No data will be coming out today so watch out for news from euro zone and the US to get an idea where the Swissy is headed. Also be on the lookout for a possible Swissy sell-off though. Spain’s sovereign credit rating received a downgrade late in the European session yesterday, and we could see some a slight case of risk aversion once the European trading session begins later.
The Swissy gained for the second day in a row, as risk appetite helped boost the European currencies. The USDCHF finished by 33 pips, to end the day at 1.0826.
Franc trading could become more volatile today, as it’s finally got some catalysts that could trigger strong moves. First, at 8:00 am GMT, SNB Chairman Philip Hildrebrand will be speaking at the General Meeting of Shareholders. Traders will be listening to his every word, as he may just drop hints about what direction the SNB will take with regards to its monetary policy.
Next, at 9:30 am GMT, the KOF Economic Barometer is due. The index, which is based on 12 economic indicators, is expected to rise from 1.93 last month, to a reading of 1.99 this month. This would indicate that the Swiss economy is slowly picking up.
It’ll be interesting to see in the coming months how traders’ sentiment towards CHF changes, given all the developmetns in Europe. Seeing as how both the euro zone and UK have all these debt problems to deal with, could the franc become an attractive alternative?
After stumbling earlier in the week, the franc posted strong gains against the dollar to end the week. The USDCHF pair dropped 60 pips last Friday, to end the week at 1.0762.
The franc appreciated versus both the euro and the dollar last Friday, as the KOF Economic Barometer gave the Swissy a nice lil’ boost. The index came in line with expectations, posting a score of 1.99. According to the KOF, the Swissy economy should start to pick up in the coming months. Let me repeat what I said last week – could this make the franc a more attractive alternative to the euro?
Well, according to SNB Chairman Philip Hildrebrand, the franc already is! In a speech he delivered last Friday, he acknowledged that the franc was benefitting because of all the fear surrounding the euro zone. With all the debt downgrades and the news regarding the Greece aid package, investors have decided to put their money in the franc, which, according to Mr. Hildrebrand, was due to its “safe haven” status.
Hildrebrand did say however, that the SNB would not allow the franc to rise sharply, as it could pose some deflation risks down the road. Currency intervention anyone?
Watch out later today, when the SVME purchasing managers’ index will be available at 8:30 am GMT. The index, which surveys purchasing managers and asks them how they feel about the state of the economy, is expected to post a reading of 65.0, down from April’s score of 65.5.
Not even the great Iron Man could save the Swissy from getting whiplashed by the greenback during yesterday’s trading. After opening at 1.0742, the USDCHF zoomed up by more than a couple hundred pips and reached a high of 1.0890.
Switzerland’s better than expected SVME PMI barely provided any support for the Swissy yesterday. The manufacturing index climbed from 65.5 to 65.9 in April, reflecting a stronger expansion in the industry during the month. This came as an upside surprise since the consensus was that the PMI would drop to 64.2 in April. However, this proved to be no match to the greenback’s strength, which was spurred by strong economic figures from the US.
No economic reports are due from Switzerland today, which could mean that the Swissy might have no ammunition to fight off another assault from the greenback. Uh oh…
Just like the euro, the Swissy took a major hit yesterday as investors chose to trade it in for the safe-haven greenback. The USDCHF, which began the Asian trading session at 1.0858, rose more than 150 pips within the day to end the US session at 1.1018.
What do you think caused the massive rally yesterday? Hah, euro zone debt concerns of course! Apparently, traders believe that the €110 billion aid package for Greece will not be enough to contain the debt contagion in euro zone. According to the Bank for International Settlements, the total exposure of European Banks to Greece, Portugal and Spain amount to almost €1 trillion.
Switzerland’s economic cupboard will be completely empty again today, so keep a close eye on data and debt news coming out of euro zone to find out where the Swissy is headed today.
Shazam! No thanks to the euro zone, the Swissy took another whack across the face. The USDCHF closed at 1.1177. The last time the pair was trading at this level was exactly one year ago!
Contagion fears are dominating the market right now, which is causing traders to shift their positions toward the dollar and away from the euro. This has been bad news for the franc, which is highly correlated to the euro.
Later today at 7:15 am, the monthly CPI report is due. My spies over at Bern say that consumer prices rose by 0.8% in April, which would mark the biggest monthly increase in a year. Still, I’m not too sure how much of an impact this will really have on the markets. Everyone is focusing on the euro zone debt issues and for good reason – it’s what is really driving the market right now.
Did you see those swashbuckling moves by the Swissy yesterday? At first, it seemed like it would continue to get clobbered by the greenback for the rest of the day. But once the USDCHF hit a high of 1.1247, the Swissy took control and brought the pair down to a low of 1.1018.
Switzerland released a better than expected CPI reading yesterday, printing a 0.9% rise in price levels for the month of April. Although their annual inflation rate held steady at 1.4% during the month, their core inflation reading posted a downtick. This caused the SNB to break out in cold sweat, worrying about worsening deflationary pressures. It doesn’t help that the Swissy has currently scored another record high against the euro, which is crumbling due to debt woes in the euro zone. Is the SNB gearing up for a surprise currency intervention move? Stay on your toes…
Today, Switzerland is set to release its retail sales report which could post a 2.9% year-over-year increase for March. This would be a couple of notches lower than the 3.1% annualized rise in retail sales seen last February. Watch out for the actual release at 7:15 am GMT.
Also keep an eye out for the release of the US non-farm payrolls report later on, bearing in mind how much volatility this could bring to the table. Still, I have a hunch that debt contagion fears could continue to overshadow the impact of these economic reports. Be careful out there!