Despite the release of bearish news from all over pips streets, the low-yielding franc lost across the board last Friday. For one, USD/CHF ended up 113 pips higher at .9199 while EUR/CHF also climbed by 76 pips to 1.2960.
I guess the Swiss National Bank’s quarterly report failed to support my ol’ buddy franc. In its statement, the SNB predicted that its economy would grow by 2.8% in 2011 and 2.3% in 2012. What’s more, it also forecasts an interest rate hike by mid-2011 on accounts of the strong franc affecting its economic growth.
Maybe this week’s parade of economic reports will catch the attention of currency bulls, starting with the UBS consumption indicator released tomorrow at 6:00 am GMT. On Wednesday we’ll also see the KOF Economic barometer around 9:30 am GMT. The report is expected to print an index figure of 2.16 from 2.18 last February, but keep your eyes glued to the tube for any surprises!
On Friday at 7:15 am GMT we’ll get hold of Switzerland’s retail sales report. Though the data clocked in a 2.6% decline in December, markets are now expecting only a 1.3% slip in the report. Last to come out from the land of the Swiss Alps is the SVME PMI report on Friday at 7:30 pm GMT. The index on the sentiments of purchasing managers came in at 63.5 in February, but a higher figure for March might support the SNB’s optimism for the Swiss economy.
Don’t miss out on these reports!
After giving a mediocre performance last week, Swissy bulls charged back into action, putting a halt to the Swissy selloff. While USD/CHF slid 54 pips lower to .9173, EUR/CHFformed a perfect doji and finished practically unchanged at 1.2926.
What a world we live in, eh? We have political uncertainty in Germany and Canada, debt woes in Portugal, turmoil in the Middle East, and nuclear meltdown threats in Japan. With so many risk issues sprouting up these days, the Swissy will probably see continued gains as the safe haven of choice of many investors.
Today, we get a rare glimpse of Swiss data at 7:00 am GMT when the UBS consumption indicator is due. Strap on your trading hats kids, because if the index prints a reading higher than January’s 1.68, it could boost the Swissy’s attractiveness and make it that much stronger!
Ka-Pow! The franc took hits against its big pip buddies yesterday as the bulls shied away from a worse-than-expected economic report in Switzerland and a bit of risk appetite in markets. EUR/CHF ended the day with a 64-pip gain at 1.2990, while USD/CHF enjoyed a 33-pip boost to .9206.
Yesterday the UBS consumption indicator revealed only an index score of 1.46 for February, which still falls short of the 1.66 reading in January. Apparently, a strong car registrations figure doesn’t compensate for the big drop in retail sales.
Will the franc get some pip-lovin’ today? The KOF economic barometer will be released at 9:30 am GMT. The data printed at 2.18 in February, but a lower number might inspire a strike deux for the franc bulls!
[I]Aloha kakahiaka[/I]! With no reports released from the land of the famous Swiss chocolates yesterday, the franc’s price action was as mixed as Happy Pip’s favorite piña coladas. While it lost 51 pips to the pound at 1.4777, USD/CHF also dropped to .9191 after hitting an intraday high of .9275. What’s more, EUR/CHF ended the day in a near draw at 1.2981!
After chatting with my forex homies, I found that the franc danced to the tune of the euro and the dollar’s selling spree yesterday. Apparently, some currency bulls just weren’t feeling the love for the franc’s counterparts. Don’t worry though, as there will be plenty of franc action today when Switzerland’s retail sales report is announced at 7:15 am GMT, followed by the SVME purchasing managers’ index at 7:30 am GMT. Markets have low expectations for both reports, but don’t get caught up with upward surprises!
If you’re a fan of V for Vendetta, you would’ve loved trading USD/CHF! The franc traded in a perfect “V” against the dollar yesterday as USD/CHF traded to a low of .9127 before it bounced back up to finish the day at .9182 with a 9-pip slide.
We didn’t receive any big reports from either Switzerland or the U.S., so the fact that USD/CHF ended the day almost unchanged shouldn’t have been a big surprise. You also have to keep in mind that the U.S. is due to publish its big NFP report today, so traders were probably laying low yesterday. It’s the calm before the storm yo!
Before all hell breaks loose with the NFP report, we’ll get a chance to play a bit of Swiss data. At 7:15 am GMT, Swiss retail sales data will be available. According to forecasts, February will likely see a 0.8% drop, following the 2.6% decline in January. People have been keeping their dough in their pockets in Switzerland, which is why the last two reports printed in the negative. Will the February post in the red as well? We’ll just have to wait and see!
Then at 7:30 am GMT, the SVME PMI is scheduled to come out. Economic fortunetellers see the index dropping from 63.5 to 62.2 for March. But if the actual reading can overshoot forecasts, as it has done in two out of the last three releases, it may give the franc another boost.
Similar to other major currencies, the Swissy’s price action last Friday was shaped like a V! The currency initially lost against the Greenback after the release of a better-than-expected non-farm payrolls report, but managed to recuperate some of its losses due to dovish comments from FOMC Vice Chairman William Dudley. USD/CHF ended Friday at .9250, a 66-pip gain from its day open price.
In other news, Switzerland’s retail sales report for February reported a rise of 1.5% year-on-year, opposite the 0.8% decline initially expected and the 2.4% drop seen the previous month.
Meanwhile, the SVME purchasing managers’ index printed a reading of 59.3 versus the 62.2 forecast. Even though the reading failed to meet forecast, it is above the baseline figure of 50.0, indicating that businesses are still expanding
No red flags on Switzerland’s economic calendar this week, but do keep an eye out for Swiss consumer price index. Scheduled to come out on Wednesday at 7:15 pm GMT, it is slated to show a 0.2% increase.
At first, the Swissy put up a good fight against the Greenback, allowing USD/CHF to dip to a low of .9192. However, the Swissy’s gains were erased towards the end of the day as USD/CHF bounced back and landed just 5 pips below its week open price of .9142.
Switzerland and the U.S. didn’t release any red flags yesterday. Only Fed head Ben Bernanke’s speech was on tap, and this was probably the reason why the Greenback rallied during the U.S. session.
The economic schedule of Switzerland is still empty for today, so make sure you keep track of the U.S. releases to see where USD/CHF will be headed. The U.S. is set to report its ISM non-manufacturing PMI and FOMC meeting minutes today, which means we could be in for some exciting price action!
Absolutely boring! With no reports to support it, the Swissy hardly moved on the charts and inched just a few pips lower yesterday. USD/CHF finished 18 pips higher at .9253 while EUR/CHF climbed 28 pips to 1.3158.
Yesterday, the Swissy was left to boogie to the tune of foreign beats as Switzerland didn’t publish any reports.
Today could be a different story though as Swiss CPI data is due at 7:15 am GMT. A 0.2% rise is expected to follow the previous month’s 0.4% rise. Strong readings from this report tend to be bullish for the currency, so be sure to stay on your toes just in case this prints an upside surprise!
It’s all good in the hood for the Swissy, baby! Switzerland’s surprisingly high CPI reading had the Swissy strutting its stuff up the charts yesterday. USD/CHF dropped 100 pips in the hour after the report was released, and the pair ended the day 64 pips lower at .9189.
Well, well, well! Look who’s caught the inflation fever! Switzerland, which has battled deflationary risks in the past, posted a surprisingly strong increase in prices last month. Forecasts had prices ticking up by 0.2% in March, which is just half the rate of February, but the actual results came in much higher than expected at 0.6%!
Overall, Swiss inflation still lags behind the rest of the world because the Swissy’s recent strength has been protecting Switzerland from rising commodities. However, this unexpected jump in inflation could pressure the SNB to join the bandwagon and consider raising rates soon, too.
Nothing on deck from Switzerland today. But do keep tabs on the rate statements of the ECB, BOE, and BOJ if you plan on trading Swissy crosses!
The franc ended yesterday’s trading with gains against most of its counterparts. I guess Swissy’s got swagger, huh? It bagged 29 pips from the dollar when it closed at .9160 while EUR/CHF ended the day 68 pips lower from its opening price at 1.3102. Sweet!
No economic data was released from Switzerland yesterday. So, the Swissy’s moves were dictated primarily by news from its counterparts. The ECB’s not-so-surprising rate hike was initially bearish for it, but when ECB President Trichet didn’t commit to raising interest rates in the future, the Swissy rallied. A tinge of risk aversion stemming from the 7.4-magnitude earthquake in Japan might have also boosted the currency.
With still nothing on tap for the Swissy today, you may want to pay attention to market sentiment to help you gauge its direction on the charts. Good luck!
Make that three in row! After a couple of weeks of choppy trading, it seems that the Swiss franc is back to its winning ways, as it posted its third straight win against the dollar. USD/CHF fell another 66 pips, ending the week at .9093.
You might be saying, “Well of course the franc gained against the dollar. What currency HASN’T against the dollar?!?”
Well, that’s a good point, but in fairness to the Swissy economy, it has done pretty well lately. If it continues to churn out good figures, I wouldn’t be surprised to see the franc continue its campaign for the “Currency King of 2011” award.
For this week, we’ve got producer price figures and the ZEW economic expectations report coming out on Wednesday and Thursday respectively. Will these figures continue to show the might of the Swiss? Or will they disappoint and give a reason for traders to slice and dice the franc like Swiss cheese?
The dollar may have beefed up against most if its counterparts yesterday, but the Swissy held its ground! Even with no support from economic data, USD/CHF extended its slide to four straight days as it finished 14 pips lower at .9068.
The Swissy was one of the few currencies that were able to overpower the dollar yesterday. Second only to the yen, it drew a lot of attention from the markets as they flocked away from many of the higher-yielding currencies.
With no data again today, it’ll be interesting to see what the markets will be up to. Will they simply repeat yesterday’s price action, or will they finally end the Swissy’s losing streak? To answer that question, you may have to monitor risk sentiment. If it turns sour, then the Swissy may just head up, up, and away!
Make that five in a row! The franc continued its win streak versus the dollar, boosted by a wave of risk aversion that swept the markets. USD/CHF closed at .8970, almost 100 pips lower from its opening price and isr is now fast approaching the 2011 low at .8923 set nearly one month ago.
So what sparked the risk aversion yesterday?
First, it was the IMF who downgraded their outlook on the U.S. and Japan. Next, news hit the airwaves that Japan got hit with ANOTHER set of earthquakes. These news spooked traders a bit and as a result, the franc benefitted. Take note, the franc has resumed its role as a safe haven currency, so whenever bad news comes out, the franc rallies.
Today, the Swiss producer price index is due for release at around 7:15 am GMT. Expectations are that producers are paying 0.4% more for their raw materials. Remember, companies normally pass on any additional costs to consumers to pay. If this report comes in exceedingly higher than expectations, could it spark speculation that the SNB will follow the ECB’s lead in hiking interest rates? Maybe, just maybe!
Up or down? Buy or sell? The markets couldn’t seem to make up their minds about the Swissy yesterday! They pushed and tugged it all over the place, but in the end, it was practically unchanged against the dollar as USD/CHF finished at .8964, just 7 pips below its opening price.
Data-wise, yesterday was another big bore as Switzerland’s lone report failed to get the market going. Its PPI reading for the month of March was in line with expectations at 0.4%, double that of the previous month. Since it didn’t deliver any surprises, neither bulls nor bears decided to move the Swissy in their favor.
On tap today, we have the Swiss ZEW economic expectations report. Remember, the last time this report came out, it upgraded its reading from -17.2 to -13.5. If this index continues to show improvements – better yet, if it prints a positive number—we could see USD/CHF hit new lows!
The Swissy turned out to be one of, if not the best, performing currencies yesterday as it managed to post a new all-time low versus the Greenback. USD/CHF had gone as low as .8896 before it closed the day at .8928.
The market’s preference for the Swissy was due to a combination of things. For one, the market didn’t want to put their money in the euro because of the possibility of a Greek debt restructuring. The market was also hesitant in buying up the Greenback, as the U.S.government remains divided in tackling their huge public deficit.
No economic data coming out of Switzerland today, so look at U.S. data instead to gauge the Swissy’s direction. Pay particular attention to the U.S. core consumer price index at 12:30 pm GMT. A better-than-expected CPI could mean that inflation in the U.S. is starting to pick up. Rising inflation is usually bullish for the domestic currency as it gives the central bank a reason to raise rates.
Good luck today!
Dovish comments weren’t enough to keep the Swissy from extending its winning streak against the euro to five days. After opening at 1.2933, EUR/CHF traded lower and closed Friday’s trading at 1.2875.
The head honcho of the SNB, Chairman Philipp Hildebrand, took center stage last Friday. He spoke about how the Swissy was too strong and that it is is already weighing down on Switzerland’s exports. Remember that a strong currency makes a country’s exports less competitive as foreigners need more of their domestic currency to acquire the goods.
While the Swissy was able to get away with a 58-pip win against the euro, it wasn’t get so lucky against the dollar. USD/CHF ended Friday higher ONE pip higher from its opening price at .8924.
We don’t have anything on tap for the Swissy this week so it may be best for you to gaugemarket sentiment and keep an ear out for more comments from the central bank.
Mixed trading for the franc yesterday as it bobbed its head to the beat of sentiment against its major counterparts. While USD/CHF rose a decent 33 pips to close at .8966, EUR/CHF continued its free fall down the charts, as it dropped for the sixth day in a row, dropping 114 pips to close at 1.2762.
Once again, no news on the docket coming out from Switzerland, so expect risk sentiment to be the major driver of franc trading. Watch out for more news about Greece and Portugal in the euro zone, as this could send spark another wave of risk aversion.
Whoa! Was the market playing Swizz Beatz tunes yesterday, or did those sounds just come from all the beating the Swissy got? Ha! Both USD/CHF and EUR/CHF ended the day higher with the Swissy losing 33 pips to the dollar and 137 pips to the euro.
Without any economic data on tap from Switzerland, the currency fell victim to market sentiment. It seems like risk appetite picked up a bit and traders bet their pips on higher-yielding currencies.
Our rockin’ economic calendar is still blank for reports for the currency. So as I always say, make sure you get a feel of the market’s mood before pulling the trigger. Ayt? Peace!
The franc sure has its own way of keepin’ it fresh! Yesterday USD/CHF dropped to a fresh record low of .8879 while EUR/CHF dropped from an intraday high of 1.2974 to close only a pip higher than its open price at 1.2895. With a currency that strong, who needs economic reports?
The boards are empty again in Switzerland today, but keep your eyes glued to the tube for any shifts in risk sentiment! A round of risk appetite might set the low-yielding franc back by a few pips, while a risk off mode could send the franc even higher against its major counterparts.
Yikes! .8850 proved to be too much for the Swissy to handle! USD/CHF just bounced off the support level during Friday’s trading before closing at 4 pips higher from its opening price at .8858.
Just like Friday, our economic calendar is still blank for reports from Switzerland today. So if you really want to bet your pips on the Swissy, I think it would be best for you to keep tabs on market sentiment. Remember that the currency usually rallies in times of risk aversion.
Tomorrow we’ll have a couple of reports on tap at 6:00 am GMT. The trade balance report for March is anticipated to show that exports outpaced imports by a 2.27 billion CHF, which is a bit lower from the 2.38 billion CHF surplus we saw in February.
Along with that, we’ll also have the UBS Consumption Indicator for the same month. A figure higher than February’s 1.46 reading will probably be bullish for the currency as this would indicate improving economic conditions, so be on your toes!