The franc continued to weaken in the aftermath of the SNB’s decision to peg EUR/CHF at 1.2000. After opening at 1.2101, EUR/CHF rose 146 pips to close at 1.2152. Ouch!
It’ll be interesting to see how vigilant the SNB will be in maintaining their stance regarding the strength of the franc. Now, I don’t expect EUR/CHF to dip below 1.2000 anytime soon, but NOTHING is ever certain in the markets, so make sure to stay on your toes!
Finally, a win against the euro! The Swiss franc recorded its first victory against the euro since the SNB announced its currency peg, pushing EUR/CHF down 83 pips to 1.2069. However, against the dollar, it continued to slide as USD/CHF rose 84 pips to .8833.
It seems as though the markets aren’t ready to take EUR/CHF too far away from the 1.2000 level that the SNB has decided to set as a floor exchange rate. With the euro zone’s debt problems in focus, traders were eager to sell off the shared currency even if it meant buying up the Swiss franc, which the SNB has vowed to weaken. But I wouldn’t read too much into this just yet. After all, EUR/CHF is still well above 1.2000.
This week, we may see more ranging action from the franc ahead of the SNB’s monetary policy assessmenton Friday. It’ll be particularly interesting to hear what the boys of the central bank have to say after seeing price action on the franc in the past few days. They only hold this meeting quarterly, so don’t even think of missing it!
After two days of gains, USD/CHF retreated yesterday as it closed 55 pips down from its .8874 open price. Switzerland didn’t release any red flags yesterday, but the ongoing euro zone debt problems seem to be attracting traders back to the Swissy. Will this behavior continue today?
The prospect of a Greek default sent investors fleeing back to the safe-haven arms of the Swiss franc, but Swissy buying was still limited by the possibility of another SNB intervention. Word through the forex grapevine is that Germany is willing to throw Greece out of the European Union if it doesn’t meet its deficit targets soon. Make sure you check out my euro zone economic commentary to get the complete scoop!
Switzerland won’t be releasing any economic data today so y’all better keep close tabs on the euro zone debt situation to figure out whether we’ll be seeing more Swissy buying today.
Zzzz… WHAT A SNOOZER! Once again, price action for the Swiss franc was an absolute bore as it refused to budge against the dollar and the euro. While USD/CHF traded sideways and ended 10 pips lower to .8802, EUR/CHF was virtually flat and never traded more than 10 pips away from its opening price of 1.2042. Can we expect more of the same today?
With the SNB closely guarding its currency, it’s no surprise that the franc hasn’t been too active lately. You wouldn’t be able to get your groove on and party either if your parents were watching you like a hawk!
Later today, Switzerland is expected to roll out its monthly PPI report, which is slated to show a 0.3% decrease in producer input prices following the previous month’s 0.6% downtick. If this index reveals that prices dipped down once again, it would only justify the SNB’s fear of deflation.
As for today’s price action, we’ll probably continue to see more sideways trading for the Swiss franc. After all, it’s unlikely that traders will do anything drastic ahead of tomorrow’s SNB monetary policy assessment. Good luck out there, kids! And remember to practice smart risk management!
Another quiet day on the EUR/CHF front, which traded within a tight range of just 28 pips and closed 9 pips higher at 1.2047. It really looks like traders are respecting the SNB’s wishes!
Not even the release of weaker-than-expected Swiss PPI figures could wake up EUR/CHF from it’s slumber. Producer prices dropped by 1.2% last month and are now down 1.9% year-on-year. This suggests that inflation is subdued and that deflation could be rearing its ugly head into the market.
One way to counter this would be for the SNB to raise interest rates. The problem of course, is that raising rates could give the Swiss franc a boost, which is exactly what the central bank wants to avoid.
Speaking of interest rates, the SNB will be releasing its [monetary policy assessment](http://Another quiet day on the EUR/CHF front, which traded within a tight range of just 28 pips and closed 9 pips higher at 1.2047. It really looks like traders are respecting the SNB’s wishes! Not even the release of weaker-than-expected Swiss PPI figures could wake up EUR/CHF from it’s slumber. Producer prices dropped by 1.2% last month and are now down 1.9% year-on-year. This suggests that inflation is subdued, which would give the SNB some leeway to raise rates if they wanted to. The problem of course, is that raising rates could give the Swiss franc a boost, which is exactly what the central bank wants to avoid. Speaking of interest rates, the SNB will be releasing its monetary policy assessment later today. No rate change is expected, but do watch out for any comments regarding the value of the franc. For now, get used to tight trading on EUR/CHF, with limited upside to the franc in general. Of course, nothing is certain in the markets and when push comes to shove, it’ll be interesting to see whether the SNB flexes its might once again.) later today at 7:15 am GMT. No rate change is expected, but do watch out for any comments regarding the value of the franc.
For now, get used to tight trading on EUR/CHF, with limited upside to the franc in general. Of course, nothing is certain in the markets and when push comes to shove, it’ll be interesting to see whether the SNB flexes its might once again.
Phew! The SNB certainly didn’t disappoint with its much-anticipated monetary policy assessment as the Swiss franc displayed some wild swings yesterday. While EUR/CHF ended the day 17 pips higher, USD/CHF tumbled 70 pips. Will the franc put up mixed results again today?
Just as everyone had anticipated, the SNB decided to hold its benchmark rate at near-zero levels. Truth be told, this announcement alone probably wouldn’t have done much to move the markets since it was already widely expected, but it was also accompanied by some aggressive words from the SNB.
The boys of the central bank reiterated their commitment to fighting the franc’s rise, even though it had only been less than two weeks since they announced the franc-euro exchange rate peg at 1.2000. According to them, they’re ready and willing to take further measures to keep the franc grounded. Talk about determination! This suggests that the SNB will stop at nothing to avoid deflationary threats and an economic slowdown.
Nothing more to see today. In the meantime, if you plan on trading USD/CHF, I suggest you check out the U.S. reports due for release today. Those heavy hitters may result in some wild moves on USD/CHF, so don’t miss 'em!
Sweep denied! After closing lower four days in a row, USD/CHF couldn’t complete a sweep and ending up giving up some of its gains last Friday. The pair closed at .8763, marking a 73-pip gain on the day.
No biggies on the docket today for Switzerland, so chances are that Swiss pairs will dance to the beat of risk sentiment. If risk appetite picks up, we could see USD/CHF push higher and test the recent high at .8900.
Take note though that the pair has gapped up by 37 pips over the weekend. Now, I ain’t sure if that gap will close today but if you do plan to take that trade, good luck!
As usual, EUR/CHF just ranged like a Range Rover in yesterday’s trading, tapping its intraday high at 1.2080 and intraday low at 1.2049. Good thing the Swissy got lucky and ended the day with a 1-pip win at 1.2064. On the other hand, USD/CHF continued to trade higher, closing 13 pips above its opening price at .8813.
We didn’t have anything on our forex calendar for the Swissy yesterday, but don’t fret! Today we have a couple of reports from Switzerland.
At 5:45 am GMT the SECO Economic Forecasts report will be released. Keep an ear out for remarks about the government’s commitment to tame its currency and for downwardly revised forecasts as these would probably keep EUR/CHF well above 1.2000 and USD/CHF from filling the weekend gap.
A few minutes later at 6:00 am GMT, the trade balance report for August will be on tap. Keep in mind that analysts have predicted the report to come in at 1.97 billion CHF. Good luck!
Well how about that? Just when you thought the SNB was done mucking up the markets, rumors of another intervention hit the airwaves! EUR/CHF shot up to as high as 1.2213, before settling at 1.2151, marking an 87-pip gain on the day.
Word on the street is that the Swiss National Bank is interested at setting the minimum rate for EUR/CHF at 1.2500. Remember, a couple a weeks back, the SNB said that would set the rate at 1.2000, and this caused the pair to shoot up a thousand pips in a matter of minutes. Apparently, they feel that 1.2000 ain’t enough and are now setting their sights at a higher rate.
Recent economic data actually suggests that the franc’s strong run this year is hurting Swiss exports. Trade balance figures showed a surplus of just 810 million CHF last August, way down from the 2.81 billion CHF we saw in July, and much worse than the anticipated 1.97 billion CHF.
Furthermore, SECO downgraded their growth forecasts for the Swiss economy from 2.1% and 1.5% in 2011 and 2012 respectively, to just 1.9% and 0.9%. With exports contributing a significant portion to Swiss growth, it’s no surprise that the SNB is doing what it can in order to weaken the franc and boost exports.
No data on tap for today, but it is possible that SNB officials will come out and officially “peg” EUR/CHF at 1.2500. If they do, we’ll most likely see some crazy moves on franc pairs, so watch out!
Whoa! It looks like the Swissy got some action on the charts yesterday. EUR/CHF tapped an intraday low of 1.1928 and quickly traded back up to close the day at 1.2218, 67 pips above its opening price. Meanwhile, USD/CHF ended the day 88 pips higher at .8987 after plunging to a low of .8704.
From what I’ve heard, the Swissy’s price action got shaky yesterday as market junkies braced themselves for another SNB intervention. There were rumors going around earlier that the central bank could once again step in the markets.
With that said, make sure you keep an ear out for market sentiment. Also, keep tabs on the ZEW Economic Expectations report later at 9:00 am GMT. A figure better than its previous reading of -71.4 may just allow the Swissy to go on a mini-rally which could reel you in a few pips on your scalp trades!
The Swissy continued its terrible performance yesterday as it allowed the strong Greenback to steal some pips from it for the fourth straight day. USD/CHF ended the U.S. trading session at .9079, 92 pips higher from its opening price that day.
With the SNB constantly threatening to intervene in the forex market and weaken the franc, it appears that the Swissy has lost its safe haven appeal. Now, in times of risk aversion, traders are rallying to the Greenback. Yesterday’s price action was evidence of this, as the Swissy still lost as the market grew concerned about global growth.
The Swissy also fell victim to bad data. The ZEW Economic Expectations survey that was released yesterday printed a disappointing -75.7 figure. In addition to being in the negative territory, it also was significantly lower than the previous month’s -71.4 reading.
No important report coming out of Switzerland today, so we could see the Swissy’s losses slow down a little bit!
Aha, look who’s been sneaking pips! The Swissy managed to snatch wins against its major counterparts last Friday despite the lack of economic reports from Switzerland. EUR/CHF closed the day 23 pips below its opening price at 1.2209 while USD/CHF ended the day at .9078 after opening at .9029.
Don’t get too giddy loading up your portfolios with francs just yet! According to the [SNB](http://www.babypips.com/forexpedia/SNB) Quarterly Bulletin, Swiss central bankers are determined to keep their promise of capping the franc’s strength. Therefore, the move we saw on the franc last Friday could be nothing more than a pullback.
Check out our forex calendar and be on your toes for economic reports on tap for the Swissy this week. From what I’ve observed recently, it seems like disappointing figures tend to send Swissy bears on pip-feeding frenzies. Good luck!
That was a close call! Despite losing a good amount of pips during the Asian session yesterday, the Swissy was able to fight back and actually end the day with a small gain versus the almighty Greenback. It also managed to move slightly higher against the euro.
Yesterday’s trading session was pretty uneventful for the most part though since no real tier 1 data was released from both Switzerland and the U.S.
Today, the only important piece of data coming out from Switzerland is the UBS Consumption Indicator. The reading was a measly 1.29 last month so any improvement will be welcomed by the Swissy bulls.
Yawn… With barely any market-moving reports released from the other economies, the low-yielding franc chilled it out against its counterparts yesterday. EUR/CHF only dipped by 5 pips to 1.2193, while USD/CHF finished the day with a 59-pip slide at .8969.
On Switzerland’s economic front we saw the UBS consumption indicator clock in an index number of 0.79 in August after showing a 1.28 reading in July. The report suggested that consumer confidence fell last month, but the traders for the most part ignored the report and focused instead on the developments in the euro region.
No report is scheduled for release in Switzerland today, so keep an eye out for any news reports that might affect risk sentiment! I hear that some economic leaders are giving speeches (again!) today so stay glued to the tube for any major announcements!
Up and down the Swissy went, where it ended up… Well, I know! USD/CHF experienced a wild roller coaster ride yesterday as risk aversion hit the markets again. The pair rose slightly throughout the morning Asian session, then fell during the European trading session, and finally rose again in the U.S. session! By the end of the day, USD/CHF settled at .9001.
No important data came out of Switzerland yesterday and you won’t be seeing any today again. Nevertheless, we may see some movement from the Swissy since several tier 1 reports will print from the U.S. At 12:30 pm GMT, the U.S. will release its weekly unemployment claims and the final GDP report. Both these reports tend to be market movers, which could indirectly affect the Swissy’s value.
Green Day’s hit single “Wake Me Up When September Ends” seems to be the Swiss franc’s theme song! It has been asleep on the charts in the past few days and has stayed within a very narrow range against the euro. Yesterday, EUR/CHF only moved 2 pips up to close at 1.2197. Will it wake up today or will it stay abed?
If you’re looking to trade the franc today, it might be better to go with USD/CHF as it has been a little bit more active than EUR/CHF. Though it has also been trading sideways lately, it has done so in a wider range of about 70 pips.
Up ahead, we have a potential market-mover at 9:30 am GMT. The KOF economic barometer is expected to fall from 1.61 to 1.41. Should results deviate from expectations, we could finally see the Swiss franc wake up!
Oops, I did it again! USD/CHF made another gap over the weekend but to the upside this time. The pair made an 89-pip jump from its .8975 open price last Friday to close at .9064, then went on to open at .9113 this week. Meanwhile, EUR/CHF’s performance wasn’t as stellar since it slid below the 1.2200 handle and closed at 1.2143 last week.
Switzerland’s KOF economic barometer came in weaker than expected as it slid from 1.61 to 1.21 in September. This marked the index’s fifth consecutive monthly decline, signaling that economic conditions have been worsening in the past few months. Components of the index showed that the construction and banking industries have been leading the decline.
Today, Switzerland is set to report its retail sales figure for August. After rising by an annualized 1.9% in July, retail sales are expected to pick up pace and show a 4.5% year-over-year increase for August. Stronger than expected figures could give the Swissy a boost so keep an eye out for the actual data due 7:15 am GMT.
But the action doesn’t end there, folks! A few minutes after the retail sales figure is released, the SVME PMI will take the spotlight. The manufacturing index is expected to dip from 51.7 to 50.3 in September, suggesting that the industry expansion slowed down a bit. However, if the actual figure manages to beat the consensus, the Swissy could be in for some gains.
The next piece of economic data from Switzerland will come on Thursday, when they release the Swiss CPI reading for September. Consumer prices have been falling for the past three months and Switzerland could be in for another monthly decline in inflation. Then, on Friday, Switzerland will report its unemployment rate, which could hold steady at 3.0% for September.
While the high-yielding currencies were taking a tumble, the franc was chillin’ like ice cream fillin’ in the charts yesterday. And to think that Switzerland clocked in disappointing economic reports yesterday! EUR/CHF slipped by 15 pips to 1.2143, while USD/CHF edged 83 pips higher to .9196.
If you were trading strictly on economic reports, then I wouldn’t blame you if you had shorted the franc. Switzerland’s retail sales dropped by an annualized rate of 1.9% in August after climbing by 2.9% in July. Also, the SVME PMI clocked in a 48.2 reading in September after showing a 51.7 figure in August. Yikes!
We won’t be seeing any Swiss economic data coming out today, but let’s see if economic reports from other economies can make an impact on the franc. Will dollar demand continue to support the Swissy? Or will risk aversion give the franc a boost?
Keep updated on your fundamentals, kids!
After topping out at .9262, USD/CHF pulled back and erased some of its gains for the day to end 14 pips up from its .9196 open price. EUR/CHF, on the other hand, had a stronger run as it rallied more than 120 pips from its 1.2143 open.
Even though Switzerland didn’t release any economic reports yesterday, the Swissy made some pretty wild moves on the charts. It reminded me of Big Pippin bustin’ his moves on the dance floor last Friday night!
News of “progress” in the euro zone debt talks boosted the euro against the Swiss franc, as the Financial Times reported that European leaders are working on bank recapitalizations. In contrast, dovish remarks from U.S. Fed chairman Ben Bernanke forced the Greenback to lose ground to the Swissy, as he expressed his disappointment over Operation Twist. Rumor has it that the Fed head is considering additional stimulus for the U.S. economy so y’all better have a look at my U.S. economic commentary for the inside scoop!
Switzerland’s economic schedule is empty again for today which means that Swissy pairs could be swayed by risk sentiment and data from other major economies. Keep an eye out for those!
The Swiss franc found no love yesterday as it was sold off against its two major counterparts. While USD/CHF scrambled up 27 pips to .9236, EUR/CHF rallied 59 pips to close at 1.2326. Will the franc attract any buyers today?
It might, that is if the Swiss CPI report comes in above expectations! The index is expected to show that prices remained flat last month, following the 0.3% decline in August. If results manage to exceed expectations, it could help boost the franc. After all, in the past, the SNB has cited deflationary threats as one of the reasons why it doesn’t want the franc to appreciate. If reports begin to show that deflationary threats have diminished, it could give the franc a bit of leeway to rise.
That’s pretty much the only bit of news were gonna get from Switzerland today. In the meantime, check out our fantastic economic calendar for any updates in the U.S. and euro zone. Peace out, homies!