While the franc remained steady against the dollar, it took another hit against the euro, thanks to poor CPI results. EURCHF finally broke through tough resistance at 1.3700, closing the day at 1.3751.
The monthly CPI report showed that consumer prices fell by 0.7% this past July, which was much worse than expected 0.5% decline. This indicates that inflation is subdued, which would give the Swiss National Bank more reason to keep interest rates steady.
Apparently, one reason why inflation isn’t growing is because of the strong appreciation of the franc in recent months. A strong franc helps temper importation costs, which keeps prices from rising. Is it time for the SNB to intervene and weaken the franc?
No major data being released today, but better keep an eye out on risk sentiment. After all, risk sentiment has been the major market driver lately- just look at how higher yielding assets have been chopping away this week! But let me remind you, it’s Wednesday today. Is it time for a mid week reversal? We shall see my forex amigos!
Ouch! That’s gotta hurt! The franc slipped and fell hard as USDCHF marched strongly up the charts to end 135 pips higher for the day.
Switzerland wasn’t to blame for the franc’s weak performance. They didn’t even publish any reports yesterday! It was actually the strength of the Greenback that pushed the franc down, with help from a rare bit of positive US economic data.
It’s no surprise that today will be another quiet day for the Swiss press. Those guys are like ninjas! In the meantime, look to risk sentiment and the US’s unemployment claims report to drive USDCHF.
The Swissy was able to sprint far enough to lock in some of its gains against the dollar before risk aversion started to chase pips away from higher-yielding currencies. After opening at 1.0528 yesterday, USDCHF traded downhill and reached an intraday low of 1.0413. Then, it started to run into the dollar’s turf and closed the day at slightly higher at 1.0462. Fortunately for the Swissy it was still able to hold on to 66 pips! Whew!
We don’t have anything coming up from Switzerland. But we do have some market-moving reports from the US so you may want to tune in to those to help you with your Swissy trades. Good luck!
The Swissy’s 88-pip gain against the dollar last Friday was a cakewalk! However, the same thing couldn’t be said about the euro. After opening at 1.3794, EURCHF traded higher and peaked at 1.3848. Then just as the euro was enjoying the view from the top of the charts, the Swissy snatched control of the pair and drove it to intraday low of 1.3747.
Switzerland’s unemployment rate might have given the Swissy its 3-pip win when it printed lower in July at 3.8%, from June’s 3.9% reading. Whew!
We don’t have anything on tap for the currency today, but don’t fret! Tomorrow we will have some data on consumer confidence to help us with our Swissy trades.
“Swiss cheese for everyone!” screamed the bears after the Swissy slipped and fell hard in its battle against the USD. USDCHF wound up 113 pips higher for the day and finished at 1.0488.
Yesterday was pretty uneventful with no hard-hitting reports. But today, Switzerland’s got something special for you!
At 5:45 am GMT, SECO unveils its quarterly consumer climate report, which is slated to publish a reading of 18, up from 14 the previous quarter. As a main indicator of consumer spending, this report has the potential to trigger a Swissy rally if it shows that consumers are more optimistic and results come in better than expected.
Did you see how pip-tastic the Swissy was in yesterday’s trading?? EURCHF closed the day at 1.3822 giving the Swissy a 50-pip gain. Whaddup! Hmm, profit-taking probably took place after the bulls hustled the pair to a two-month high of 1.3926.
But wait, there’s more! The Swissy also gained against the dollar! It pulled down USDCHF three pips below the day’s opening price of 1.0488, after it peaked at 1.0619. A reversal in the market’s risk sentiment from aversion to appetite probably made Swissy taste sweet like "Yum, piplicious" to investors.
We don’t have anything on tap for the Swissy today so keep an ear out for reports coming from its counterparts to help you snatch those pips! Good luck!
The Swissy’s scorecard was as mixed as a bag of M&Ms in yesterday’s trading. Risk aversion cost it 110 pips to the dollar. Boo! But it wasn’t all bad. Thanks to the negative risk sentiment, it was able to snatch 184 pips from the euro. Yay!
There were no economic reports for the Swissy yesterday and today won’t be any different. I guess it’ll just ride the latest wave of risk aversion that is flooding the markets right now. Good luck on your trades!
“Not so fast!” yelled the Swissy to the Greenback yesterday as it fought back to recover some of its recent losses. After reaching a high of 1.0628, USDCHF tumbled to the 1.0500 area later on.
Switzerland didn’t release any economic reports yesterday but the Swiss franc was able to gain against the Greenback after the US released weaker than expected data.
Today, Switzerland is slated to release its July PPI reading at 7:15 am GMT. The report could print a 0.2% uptick for the month, up from the 0.4% slide in producer prices in June. If the actual figure meets or beats the consensus, it could give the Swissy another boost and allow it to bag more gains against the US dollar.
Stay tuned for the release of US retail sales, inflation, and consumer sentiment reports later on. These figures could have a huge impact on risk sentiment and we all know how this could cause wild moves in the markets!
Given all the fireworks across the board, I’d say that movements in USDCHF were relatively quiet. The pair stuck within a tight range of less than 70 pips, closing the day 19 pips higher. Still, this didn’t prevent the franc from busting a move against the euro. EURCHF dropped for the 4th consecutive day to end the week almost 400 pips lower.
One reason for the drop in EURCHF was comments made by SNB Vice President Thomas Jordan, who said that the bank is considering unloading on their euros, because well, the euro has been pretty crappy. Okay fine, I’m paraphrasing. But yes, the reason why the SNB is thinking about selling their euros is that they are now exposed to a ton of currency risk.
Remember, when the SNB was notoriously intervening in the markets to weaken the franc, they accumulated boat loads of euros. Now that the euro dropped last week, this means that value of the SNB’s euro denominated assets have dropped.
In any case, these comments helped contribute to the euro’s demise. I also daresay that one reason why the franc didn’t crap out against the dollar is that it is slowly regaining its place as a safe haven currency. Let’s see in the coming weeks if the franc can remain resilient, especially with what appears to be renewed risk aversion that is taking over the markets.
Before I move on to major economic reports coming out this week, let me remind you that PPI figures were made available last Friday. Reports indicated that producer paid 0.5% less for their raw materials. Initial expectations were calling for an increase of 0.2%. Let’s see if this cut back in raw material prices will translate to lower prices for consumer goods.
Looking ahead, we won’t be getting any hard hitting news until Thursday, when trade balance data and the ZEW economic expectations survey come out on Thursday. For the meantime, keep an eye out for risk aversion! This appears to be the dominant market theme, so be careful in taking those risky positions!
The Swissy went shop-pip-ing on the charts yesterday as EURCHF and USDCHF both traded lower yesterday. Thanks to risk aversion, it got a 115-pip bargain at the expense of the dollar and it continued its five-day winning streak against the euro, bagging 86 pips from it in yesterday’s trading.
Word in the market is that Japan’s disappointing GDP data flicked the risk aversion switch again and boosted the franc. Usually, in times of negative risk sentiment the Swissy would take a hit against the dollar. It seems like more and more, the franc is regaining its place as a safe haven currency.
With nothing on tap for the Swissy until Thursday, make sure you keep an eye out on risk sentiment. This is what’s driving the market right now, and with all the crazy action we saw last week, who knows what may happen this week!
Make sure that you also keep an ear out for the SNB because I don’t think they’re too happy that the franc is absolutely killin’ the euro right now. So be careful!
Ouch! The franc took a hit from its major counterparts yesterday after a rally in risk appetite weakened the demand of the low-yielding currencies. USDCHF went up to a 1.0437 closing price after hitting an intraday low of 1.0362, and EURCHF went straight up to close 114 pips higher than its open price at 1.3443.
It seems that the positive industrial production in the US and the successful Irish bond auction in the euro zone helped excite the currency bulls into buying high-yielding currencies. Is risk appetite here to stay until the end of the week?
If it is, then the franc would have to move to the tune of risk appetite again today because no data from Switzerland is scheduled for release.
“[I]Just dance, gonna be okay, da-da-doo-doo-mm just dance.[/I]” The franc did a Lady Gaga and danced to the tune of the other currencies’ price action when no economic data from Switzerland was released yesterday. EURCHF ended the day at 1.3403 after dropping to an intraday low of 1.3358, while USDCHF closed 16 pips lower than its open price at 1.0422.
Maybe we’ll see more exciting Swissy price action today when the trade balance data is reported at 6:15 am GMT. The difference between Switzerland’s imports and exports is expected to widen to 1.86 Billion CHF from last June’s 1.77 Billion CHF, but a better-than-expected number might indicate strong demand for Swiss exports despite threats of cooling global demand.
The ZEW economic expectations will also be published today at 9:00 am GMT. Are the Swiss more optimistic this month than in July? A figure higher than July’s 2.2 optimistic reading just might attract the franc bulls into boosting the currency.
“Go Swissy, it’s your pipday we’re gonna party coz it’s your pipday,” chanted the traders as the Swissy gained against most of its counterparts yesterday. EURCHF had opened at what would be its intraday high at 1.3403 before it dropped like it’s hot to its closing at 1.3235. It also bagged 99 pips against the dollar when it finished the day at 1.0323. Boo yeah!
The disappointing economic reports from the US hollered “risk aversion” in the market and boosted the Swissy up the charts. But it wasn’t just about risk sentiment. Switzerland’s trade balance data for July showed that exports outpaced imports by 2.89 billion CHF. Whaddup!
Talks of an intervention from the BoJ might have also boosted the Swissy’s safe haven currency status. Word in the market is that investors are steering away from the yen as USDPJPY approaches its historic lows.
Will the Swissy continue its pip-pip-party on the charts today? With a relatively blank schedule ahead of us, which means that there are fewer catalysts for risk aversion, we might see the Swissy lose some of its gains from yesterday. But that’s just me. Keep tabs on the charts and see for yourself. May the pips be with you.
Safety first! Despite the lack of reports from Switzerland last Friday, the franc managed to end the week with mixed results as risk aversion continued to set the beat of the pip charts. EURCHF closed 76 pips lower than its open price at 1.3158, but USDCHF leveled off to a 1.0354 close after reaching an intraday high of 1.0393.
Will the franc get any thrill from Switzerland’s reports this week? All the Swiss action will only begin on Thursday when the employment level is released at 7:15 am GMT. Will last June’s figure surpass the 3.96 Million employees last May?
The KOF economic barometer will also be published this Friday at 9:30 am GMT. The economic indicator for August is expected to increase to 2.24 from its 2.23 reading last June, but a better-than-expected figure might indicate that growth is healthy despite a strong currency.
The franc came to life during the European trading session after ranging along like the famous Swiss alps during the early trading sessions. The mixed PMI data from the euro zone attracted the franc bears, and sent EURCHF 81 pips higher than its intraday low at 1.3186. USDCHF, too, went on its merry way up to a 1.0413 close, 111 pips from its intraday low.
No data will be released from Switzerland today, but keep your eyes peeled for any reports or announcements that might affect risk appetite!
Whee! USDCHF enjoyed sliding down the charts yesterday as it topped at 1.0451 and closed at 1.0311. Hmm, it looks like the Swissy just outperformed the Greenback in the safe-haven arena!
Although Switzerland didn’t release any economic data yesterday, the Swissy was able to pocket huge gains against the Greenback and the euro. Thanks to renewed fears of a double-dip recession and weak economic data from the US, traders flocked to the Swissy’s safe arms.
Switzerland’s economic schedule is empty again today so expect the Swissy to be driven by risk sentiment once more. The US is set to release a few top-tier reports, namely the new home sales and durable goods orders data, so stay on your toes for another run of risk aversion if these figures fall short of expectations.
Woot woot! Another day of gains for the Swissy! Risk aversion and weak US economic data kept USDCHF heavy as it dipped to a low of 1.0248. Is it gearing up to make a new yearly low?
All this talk of a double-dip recession, supported by disappointing US economic figures, have brought USDCHF close to breaking the major support level at 1.0300. With no economic reports released from Switzerland yesterday, the Swissy was able to score another set of gains thanks to its safe-haven appeal.
Today, Switzerland is set to release its employment report at 7:15 am GMT. The number of employed is expected to climb from 3.96 million to 3.97 million in the second quarter of 2010. Well, their employment level has been stuck at 3.96 million since the third quarter of 2009 so an uptick would certainly be bullish for the Swissy. Find out if the actual report would hit expectations later on.
And she’s done it again! The franc gained against its major counterparts yesterday as economic uncertainty continued to cloud the markets. EURCHF dropped 18 pips lower than its open price at 1.3026 after soaring to an intraday high of 1.3145. Meanwhile, USDCHF fell by 72 pips to a 1.0233 closing price.
Switzerland’s quarterly employment level might have helped the franc’s price action when it printed at the expected 3.97 million mark. This was better than the first quarter’s 3.96 million figure, and suggested that job demand remains healthy.
Will the franc’s good vibes last until the end of the trading week? The KOF economic barometer for August is set to hit the spotlight today at 9:30 am GMT. The data is expected to slip to 2.22 from July’s 2.23 figure, but a better-than-expected number could indicate that the Swiss economy remains resilient despite threats of weak global demand and a strong currency. Good luck in your trades!
Too much too soon eh? The Swiss franc ran all out of luck on Friday, as it got walloped by the dollar . USDCHF closed almost 70 pips higher to finish just a hair below the 1.0300 handle. Meanwhile, EURCHF traded within a super tight range of just 40 pips to finish at 1.3132.
Perhaps part of the Swissy’s losses can be attributed to the results of the KOF economic barometer index, which failed to hit forecast of 2.22. The index printed at 2.18, reflecting that the outlook for the Swiss economy isn’t as bright as it was in August.
Still… I don’t think this is any reason for concern. The Swiss economy has been doing relatively just fine, while also benefitting from the lack of any debt concerns. Not to mention, the franc seems to have regained its place as a safe haven currency.
No high impact reports from Switzerland over the next couple of days, so we may just see more range like trading, especially in EURCHF. Do watch out though, since this week appears to be a game changer in the currency markets, especially with all the data coming out from the US.
The Swissy walked tall and with swagger as it recorded wins against the two largest currencies yesterday. It gained 113 pips against the euro while edging out 13 pips versus the Greenback.
The Swissy has been a popular choice for investors lately as risk aversion has seized the markets once again. Among the safe-haven currencies, it’s been one of the picks as the Greenback and yen have been troubled by domestic economic problems.
The question is: How long will it continue to reign? Something tells me the Swissy could rule the charts for an extended period of time if the June UBS consumption indicator prints better than the previous month’s reading of 1.81. Catch the report’s release later at 6:00 am GMT!