It appears that not even the Swissy was spared! Just like versus other major currencies, the Greenback was able to trample all over the Swissy yesterday. From its week open price at .8793, USD/CHF was able to slowly climb to end the U.S. trading session at .8837.
There was nothing on Switzerland’s forex calendar yesterday and no data is due again today, so expect the Swissy to be driven primarily by market sentiment. If market participants continue to be concerned and wary about Greece’s debt situation, we could see the Greenback maintain its rally.
The franc pulled a fast five – I mean fast one on its major counterparts when USD/CHF and EUR/CHF dropped even when there’s a bit of risk rally in markets yesterday. Swissy fell from its .8893 intraday high and closed almost a hundred pips below at .8792, while EUR/CHF slipped by 10 pips to 1.2405.
Switzerland didn’t release any reports yesterday, so the franc played on lingering concerns in global economic growth. Or were traders just looking for an excuse to buy the franc? I don’t know about you, but suddenly Forex Gump’s article on the franc is making a lot of sense!
For today we might need to watch the newswires for risk appetite as there won’t be any reports from the land of the Swiss chocolates yet again. Or better yet, why not read up on Forex Gump’s Three Reasons Why You Should Buy the Franc?
“I’m number one!” cried the Swissy yesterday as it bullied the Greenback into submission yesterday. USD/CHF, after it had opened the day at .8792, fell almost the entire day to close the U.S. trading session at .8728. All in all, the pair dropped a good 64 pips.
There wasn’t any important economic data from Switzerland to speak off yesterday, but we will be seeing the country’s trade balance and employment level report today.
The trade balance, which will be published at 6:00 am GMT, is expected to show a 2.01 million CHF surplus, almost double the 1.09 million CHF surplus seen the month before. The strong jump in surplus could mean that Switzerland’s strong currency isn’t at all negatively affecting their export industry.
At 7:15 pm GMT, Switzerland’s report on employment will be released. The forecast is that the number of employed people in the first quarter of 2011 increased to 4.10 million from the previous quarter’s 4.09 million.
What a beast! The Swissy straight up tore through the charts yesterday, even without much help from trade balance and employment data! USD/CHF dropped 67 pips while EUR/CHF dropped 50 pips.
What’s surprising with the Swissy’s rise is that it was able to do so even though its trade surplus didn’t widen as much as expected last month. From 1.00 billion CHF, it only expanded to 1.52 billion CHF, and not 2.01 billion CHF as forecasted. Still, if you think about it, it’s actually not that bad considering that exports still saw a healthy month-on-month growth of 7.9%, reversing the previous month’s 3.1% drop.
Also, yesterday’s employment data didn’t give markets much to act on. It came out just roughly in line with expectations. The number of employed people, or the employment level, climbed from 4.09 million to 4.11 million last quarter, barely beating the consensus forecast of 4.10 million.
I wonder if the Swissy can chalk up some more gains today and end the week on a high note. There’s certainly potential for it to do so, especially with the KOF economic barometer on tap at 9:30 am GMT. Survey says the index will probably tick down from 2.29 to 2.22, but if we see a better-than-expected number for May, it could cause another Swissy rally.
The Swiss franc showed that it was never too early to start the party as it grooved to Taio Cruz’s “Higher” during the wee hours of the Asian session last Friday. USD/CHF fell by more than a hundred pips from the .8650 area while EUR/CHF sank below the 1.2200 mark. How much higher can the Swissy go?
Thanks to its impressive rally last week, the Swiss franc was able to bag the “Best Performing Currency against the Greenback” for the year… so far. Looking back, USD/CHF has plummeted from the .9800 area all the way down to .8500 in a span of five months! Switzerland hasn’t been releasing a lot of economic data, which means that euro zone debt woes and weak economic data from the U.S. are mostly to blame for USD/CHF’s drop.
This week, however, Switzerland is set to release a big report, which is its retail sales figure for April. It is expected to show a 1.9% rebound for the month, erasing the 0.2% decline seen last March. Watch out for that on Wednesday 7:15 am GMT because stronger than expected figures could push the Swissy even higher. Also due then is the SVME PMI which could dip from 58.4 to 57.8.
Other than that, Switzerland’s economic calendar is empty for the rest of the week. Make sure you keep tabs on market sentiment and stay on your toes for a possible central bank intervention, verbal or otherwise. Good luck!
Yeouch! The franc got burnt like a Memorial Day barbeque yesterday when there were barely any economic reports (and traders) to move the price action around. EUR/CHF ended the day 28 pips higher at 1.2179, while USD/CHF took a breather from its record-breaking fall by climbing by 47 pips to .8528.
Let’s see if the franc bulls get their party started once again today when Switzerland’s GDP report will be released at 5:45 am GMT, followed by the UBS consumption indicator at 6:00 am GMT. Traders are expecting the first quarter GDP to slip to only a 0.6% growth from its previous 0.9% reading, but keep close tabs for any surprises!
The Swissy seemed to lose its cool yesterday when traders flocked back to the euro. EUR/CHF jumped by almost a hundred pips from its 1.2180 open price to close at 1.2275. Meanwhile, USD/CHF landed back above the .8500 handle. Is the Swissy about to erase its recent gains?
Talks of a second bailout package for Greece lifted the euro’s spirits yesterday, forcing traders to let go of the Swiss franc. It turns out that the EU already ruled out debt restructuring for the debt-ridden Greece and that the next bailout package would be ready by June. Oh wait, it’s already June!
Aside from renewed demand for the euro, a weak Swiss GDP also dragged the franc lower in yesterday’s trading. It turns out that Switzerland’s economic growth wasn’t as strong as expected as they printed a 0.3% GDP reading for the first quarter of the year, half the projected 0.6% expansion. What’s even worse is that their GDP figure for the previous quarter was revised downwards to show a 0.8% uptick, a notch lower than the initially reported 0.9% growth.
But the bad news doesn’t end there! The Swiss UBS consumption indicator also showed signs of weakness as it dipped from 1.69 to 1.59 in April.
Brace yourselves for more red flags from Switzerland today. Their retail sales figure and SVME PMI are due 7:15 am GMT and more disappointing results could drag the Swissy even lower. Their retail sales report could post a 1.9% annualized rebound for April, following the 0.2% year-over-year decline seen last March. Meanwhile, their SVME PMI could fall from 58.4 to 57.9 in May, suggesting that the expansion in their manufacturing industry is slowing down.
The Swiss franc’s performance yesterday was exactly like Lebron James’ in game 1 of the NBA finals… downright beastly! With risk aversion and positive Swiss data giving it a boost, it easily trumped its major counterparts, sending USD/CHF down 104 pips and EUR/CHF down 191 pips.
Imagine the joy of Swissy bulls when they saw that Swiss retail sales practically QUADRUPLED the forecasted 1.9% growth and posted a staggering 7.5% uptick in April. You could practically hear them shriek like little girls at a Justin Bieber concert when this report was followed up with a better-than-expected SVME PMI reading of 59.2 (versus 57.9 forecast). And to top it all off, they had risk aversion working in their favor, too! Things couldn’t have gone any better!
Today, Swiss banks will be closed in observance of Ascension Day. But even though Swiss bankers will be out of the picture, don’t be surprised to see the Swissy gain some more. Risk aversion seems to be a very strong theme, so the Swissy’s bullish momentum will probably carry it up again today.
The Swissy sure knows how to keep it tight, huh? USD/CHF consolidated around its .8427 day open price for the entire day thanks to the lack of top-tier data from the U.S. and Switzerland. EUR/CHF, on the other hand, made a huge jump from a low of 1.2054 to a high of 1.2227 before closing at 1.2206.
Switzerland’s economic schedule is empty for today but the Swissy’s still got game! Don’t forget that the Swiss franc usually acts as a safe-haven currency when things go awry in the euro zone. And with Greek’s debt problems still unresolved, the Swissy still has a chance to shine.
If you’re trading USD/CHF, make sure you stay alert during the release of the U.S. NFP report because it could have a huge impact on dollar movement. Better check out my U.S. economic commentary to see how this report could turn out.
We sure Dirk Nowitzki ain’t Swiss? Cause he’s money just like the Swiss franc!!! Once again, the franc tore up the charts, beating up its favorite punching bag, the dollar. USD/CHF sank to new lows, finishing 70 pips lower at .8352.
Even though the franc hasn’t really been releasing any major data, it’s been waxing hot on the charts. As Forex Gump pointed out in his blog a couple weeks back, the franc has benefitted from its status as a safe haven currency as well as the continued rise in gold prices. As long as nothing drastic happens in Switzerland, I don’t see anything stopping the franc’s rise in the near future!
I guess you can’t win ‘em all! The franc gave back some pips to the dollar yesterday, as USD/CHF closed 13 pips higher to end at .8366. Then again, the franc did start last week with a before finishing off with four consecutive wins. Could we see a repeat this week?
We’ve got Swiss CPI data coming out at 7:15 am GMT, with expectations that inflation was flat last May. Quite frankly, I don’t see this data moving the market unless we see a where-the-heck-did-that-come-from figure.
No mercy! The Swissy didn’t let the dollar off the hook yesterday, even as every other major currency shot up the charts. USD/CHF held steady and closed 5 pips lower at .8361.
The only bit of data from Switzerland was the CPI report, which didn’t deliver anything surprising. As expected, Swiss prices failed to follow up its 0.1% rise in April and remained flat in May. If it keeps this up, the Swiss National Bank will have very little reason to raise rates!
Up ahead, we’ve got Swiss employment data comin’ out at 5:45 am GMT. According to forecasts, the unemployment rate improved from 3.1% to 3.0% last month. If this is true, it could result in more gains for the Swissy as it will be the FIFTH straight month that the unemployment rate ticked lower! Now THAT’S gangsta!
What happened to all the Franc bulls?!? For the third consecutive day, the franc failed to make any headway against the dollar. USD/CHF traded within a tight range of just 35 pips and is still trading around the .8360 area. Could this be the bottom for the Swissy?
As expected, the unemployment rate ticked down lower to 3.0%. As I mentioned yesterday, this marked the fifth consecutive month that the rate has gone down! As long as we keep seeing the good data from Switzerland, the franc should continue to find nice support.
No data coming out from Switzerland for the rest of the week, but with a couple of interest rate decisions coming out later, we may see a shift in sentiment that could prove to be the catalyst to dictate Swissy trading!
Aha! It looks like all ‘em Swissy bulls were still M.I.A. in yesterday’s trading! The Swissy lost to the dollar when USD/CHF traded higher after opening at .8360. It spiked up to its intraday high of .8446 before closing at .8412. It also lost to the euro as EUR/CHF ended the day 25 pips higher from its opening price at 1.2207.
Unlike the U.S. dollar, the Swissy didn’t have any economic report that boosted it against its counterparts. It actually got lucky that profit-taking hit the euro and allowed it to cut its losses as EUR/CHF fell from its intraday high of 1.2303.
Today will be another snoozer for the Swissy with our forex calendar still blank for reports from Switzerland. So keep tabs on what we have from its counterparts, ayt?
With risk aversion taking over the market, the franc bulls racketed up the pips against the euro last Friday. EUR/CHF tested recent lows at 1.2060 and ultimately closed 120 pips lower at 1.2083. Will the franc continue to dominate this week?
For once, Switzerland actually has a full plate of economic reports coming out this week.
Tomorrow, the SECO economic forecasts will be released at 5:45 am GMT. This report forecasts all the key components that are included in the government’s GDP analysis, so it could provide good insight as to how well (or poorly) the economy should perform in the coming months.
On Wednesday, producer price index figures are on deck and are expected to show that producers are paying 0.2% more for their raw materials. Honestly though, I don’t expect this to be a major market mover.
The biggie of the week is the Swiss National Bank rate statement on Thursday. Nope, the central bank isn’t expected to raise rates, but make sure you keep your eyes, ears, and Twitter account for any rhetoric about the strength of the franc. The SNB is notorious for intervening in the market and with the franc hitting all-time highs, its quite possible that we’ll hear some officials show “concern” about the franc’s persistent rise.
Aha! Look who’s been sneaking pips from its counterparts again! Despite the lack of economic reports from Switzerland, the Swissy was able to end yesterday’s trading with a 28-pip gain from the euro and a 58-pip win from the dollar.
I wonder if the SECO Economic Forecasts report for the second quarter of 2011 would fuel the Swissy’s rally. Keep an ear out for optimistic remarks on the Swiss economy as these may just do the trick! Don’t miss it later at 5:45 am GMT.
No thanks to increased risk appetite, the Swissy experienced huge losses across the board yesterday. USD/CHF, after it had opened the day at .8373, closed the U.S. trading session higher at .8373. Meanwhile, EUR/CHF rose to 1.2215 after it had started the Asian trading session at 1.2070.
The market’s appetite for risk seemed to be fueled by the better-than-expected U.S. retail sales report and Chinese inflation data. The U.S. retail sales report showed only a 0.2% decline versus the 0.3% decrease expected while the Chinese consumer price index (CPI) printed a strong 5.2% gain.
Today, the Swissy’s direction will be determined by Switzerland’s producer price index (PPI). Scheduled to come out at 7:15 pm GMT, the PPI is slated to print a 0.1% gain. If the actual figure beats forecast, the Swissy could end up recuperating the losses it incurred.
While the Swissy felt so fly against the euro in yesterday’s trading, it got its tush whooped by the dollar. EUR/CHF tumbled 126 pips to its closing price of 1.2090. On the other hand, USD/CHF traded higher and ended the day 84 pips above its opening price at .8538.
Ha! Europe’s debt woes might have allowed the market to look past the disappointing inflation report from Switzerland. But it sure didn’t escape the dollar bulls’ attention.
The PPIreport for May showed that producer prices declined by 0.2% during the month and fell short of the 0.1% forecast.
I wonder if the report will have a big impact on the SNB statement later today at 7:30 am GMT. With the Swissy trading near its all-time highs, I don’t think anyone expects the central bank to raise the official cash rate up from its current 0.25% level/ However, this doesn’t mean we wouldn’t see any action on the Swissy pairs!
Remember that deflation has been one of the concerns of the central bank and the absence of inflationary pressures in the economy may give it one more reason to be dovish in its statement. So be careful!
Aside from the central bank interest rate decision and monetary policy assessment, we’ll also have the Swiss industrial production report on tap at 7:15 am GMT. The forecast is for output to have declined by 7.5% during Q2 2011, following the 7.4% uptick we saw in the first quarter.
Finally, signs of life from the Swissy! After going through a steep two-day slide, it bounced back against the dollar, rising 44 pips in light of the Swiss National Bank’s press con.
Well, the big SNB monetary policy assessment that everyone was waiting for turned out to be a big nonevent! What a bore! But even though the SNB kept the LIBOR at 0.25%, as expected, it also gave the markets something to chew on.
Remember how the Swissy sold off in the past couple of days because the markets were expecting the SNB to jawbone and raise concern about its recent strength? Well it seems we can rule out an intervention… for now! SNB board member Jean-Pierre Danthine said selling the Swiss currency to weaken it isn’t an option for the central bank right now. Phew!
With that issue finally behind it, we may see the Swissy post some gains and finally benefit from the bout of risk aversion that’s been dictating the markets lately.
Mixed results for the franc to end last week, as it gained versus the dollar, but took a hit against the euro. USD/CHF closed 11 pips lower at .8483, while EUR/CHF popped up to 1.2137, up 90 pips for the day.
While the franc did lose out against the euro last Friday, I have to agree with my buddy Forex Gump and say that there are 4 good reasons to buy the franc right now.
Looking ahead, no red flags coming up, but do look out for the ZEW economic expectations and trade balance figures later this week. These reports may just cause a short term spike in franc pairs, which could be ideal for those of you who love trading the news.