The franc is on fire baby! For the second day in a row, the franc destroyed the dollar, as USD/CHF fell another 44 pips to close at .9592. Will the franc bulls go for three in a row?
The only data on tap for today is trade balance figures at 6:00 am GMT. Expectations are that a surplus of 2.10 billion CHF was posted for the month of July.
Still, I don’t expect this report to have too much bearing on Swissy trading. Make sure you check out our forex calendar for other data scheduled for release during the New York session, as these could prove to be the main drivers of risk sentiment today.
Make that 4 days in a row! The Swiss franc extended its gains against the dollar in yesterday’s trading. USD/CHF dropped from its opening price of .9592 and traded all the way down to .9539 where it bottomed. At the end of the day, the franc was able to score a 31-pip gain as the pair closed at .9561.
There wasn’t any economic data from Switzerland. However, it looks like the mixed roster of reports from the U.S. gave traders enough reason to buy the franc at the dollar’s expense. Of course, it also helped that markets are optimistic about the upcoming meeting of Greek Prime Minister Antonis Samaras with German Chancelor Angela Merkel, French President Francoise Hollande, and the EU.
Our forex calendar for today is once again blank for reports for the Swiss franc. With that said, make sure you keep tabs on updates regarding the much-anticipated meeting. I have a feeling that it would continue to have an impact in the currency markets in today’s trading. Good luck!
On Friday, the Swiss franc lost all of the pips it gained on Thursday faster than an avalanche in the Swiss alps. USD/CHF traded higher immediately after opening at .9561. By the New York session close, the pair was up 36 pips above its starting price.
But fret not! Some market gurus say that the Swiss franc probably just took a break after a few consecutive days of rallying against the dollar.
That doesn’t mean you should go back to shorting USD/CHF blindly though! Be on your toes for events that could shift market sentiment. Should risk aversion kick in, we may just see the Swiss franc score another loss in today’s trading.
The franc joined its European counterparts in the losers’ bench yesterday. USD/CHF traded higher, after opening at .9599. By the end of the New York session, the franc had incurred an 11-pip loss at .9610.
It would seem that investors were still jittery in yesterday’s trading. Consequently, the dollar and the yen saw bigger demand as traders sought their safe haven appeals.
With that said and given that our forex calendar is still blank for reports from Switzerland, make sure you’re on your toes for any shift in market sentiment. Should risk appetite pick up in today’s trading, we may just see USD/CHF trade lower.
The Swiss franc was able to stage a nice 46-pip run versus the dollar yesterday, thanks to a highly successful Spanish bond auction. Additionally, the Swiss National Bank (SNB) is believed to have accumulated all the euros that it intends to, and will now ease on defending the EUR/CHF peg.
Internal data was also positive. The employment level report showed that the number of people employed for the second quarter was at 4.07 million, notably higher from the 4.04 million forecast. It was also an improvement from the first quarter’s 4.05 million figure.
Today, the KOF economic barometer will be released. It will come out at 7:00 am GMT and is expected to print a 1.51 reading. If it comes out higher than forecast, we could see the franc exhibit another strong performance.
With the KOF economic barometer printing stronger-than-expected, analysts believe that the SNB’s EUR/CHF peg is working. So why did the franc fall against its counterparts?
USD/CHF capped the day 29 pips higher at .9585, while GBP/CHF also rose by 53 pips to 1.5174. Whatever caused the franc’s weakness, it can’t be from the KOF economic barometer, which was the only report released from the Land of the Swiss Alps yesterday.
The data came in at a 1.57 reading in August, which is not only stronger than July’s 1.41 figure but is also higher than the 1.51 number that analysts were expecting. The report sent a cloud of good vibes among the investors as it hinted that the SNB’s EUR/CHF peg at 1.2000 is doing its magic at supporting economic activity.
No other news report is expected to come in from Switzerland today, so keep an eye out for market-moving reports from the euro zone and the U.S.!
Due to the lack of market-moving data from Switzerland, USD/CHF exhibited little movement yesterday. Save for unexpected 50-pip risk aversion spike up during the morning U.S. trading session, the pair generally consolidated the entire day.
The short bout of risk aversion was caused by weaker-than-expected data from the U.S. The unemployment claims came in at 374,000, slightly higher than forecast. Meanwhile, the Core PCE Price Index showed a flat reading versus the 0.1% increase initially expected.
No data scheduled to be released from Switzerland again so the Swissy’s direction will most likely be determined by U.S. data again. Be careful of profit-taking action from big banks too. After all, it is both a Friday and the end of the month!
With no data out from Switzerland, the franc joined the anti-dollar rally last Friday. USD/CHF fell to an intraday low of .9502 before it closed just below its intraweek support at the .9550 area.
Thanks to Ben Bernanke hinting of a QE3 in the near future, the Greenback weakened against its counterparts including the franc.
Will the franc perform as well as last Friday when Switzerland releases its tier one data? Aside from SNB Chairman Jordan’s speech at 7:00 am GMT, Switzerland will also release its retail sales and SVME PMI numbers at 7:15 am and 7:30 am GMT respectively.
The Swiss Alps country will also print its GDP report tomorrow at 5:45 am GMT, which will be followed up by the CPI numbers on Wednesday at 7:15 am GMT. Then, just before Uncle Sam prints its NFP report on Friday, Switzerland will release its employment numbers at 5:45 am GMT and foreign currency reserves report at 7:00 am GMT. Talk about a jam-packed week!
Despite weaker than expected data from Switzerland, the Swiss franc was able to keep its head up during the London session and even end the US session with a tiny gain against the Greenback. USD/CHF closed at .9536, 22 pips down from its .9558 open price.
Switzerland’s annualized retail sales figure missed expectations of a 3.5% increase for July and posted a mere 3.2% rise. Even worse, the June figure was revised down from the initial 3.7% estimate to show a 3.3% year-over-year uptick for the month.
Meanwhile, the SVME PMI revealed that the Swiss manufacturing industry contracted yet again as it showed a 46.7 reading for August. This came as a surprise since analysts were expecting the PMI to climb from 48.6 to 49.2 during the month.
Today, Switzerland is set to release its GDP figure for Q2 2012 and possibly show that their economy grew by 0.2%. This would be much weaker than the previous quarter’s 0.7% growth and Q2 2011’s 0.4% economic expansion. Make sure you stay tuned for the actual release at 5:45 am GMT because a weaker than expected reading could result in a Swissy selloff!
Thanks to a weaker-than-expected Swiss GDP reading, the franc gave up its gains against its counterparts. For example, USD/CHF jumped by 25 pips and capped the day at .9561 after hitting an intraday low at .9509.
It wasn’t all about the franc though. Risk aversion in markets also boosted the Greenback higher, which explains why the franc didn’t lose as much against its other counterparts.
Today Switzerland is set to release its CPI data at 7:15 am GMT. If the data prints way hotter than the expected 0.1% growth, then it could remind investors that SNB’s Thomas Jordan is becoming concerned with rising prices in the real estate sector. Will it cause speculation of more SNB action?
Thanks to a slight improvement in risk sentiment, the Swiss franc was able to pocket some gains against the Greenback during yesterday’s trading. However, price action was a little more volatile than usual as USD/CHF spiked to a high of .9609, dipped to a low of .9530, before closing at .9560.
Swiss CPI missed expectations for the month of August as it stayed flat during the period instead of rising by 0.1%. On an annualized basis, Swiss CPI is down by 0.5% last month.
This release triggered a Swissy selloff during the London session, but these losses were quickly recovered as the franc got a boost from risk appetite. As it turns out, market watchers are feeling optimistic about prospects of further easing from several major central banks as they believe that the global economy needs to be propped up by more stimulus.
There are no reports due from Switzerland today which means that the Swissy could be vulnerable to risk sentiment. Note that the ECB and BOE are set to make their rate statements today and that the U.S. is set to release its ISM non-manufacturing PMI. Dovish statements or weaker than expected economic figures could set off another round of risk aversion, which might be negative for the franc.
The Swissy pulled a Dr. Jekyll and Mr. Hyde yesterday as it strengthened against the dollar but weakened against the euro. USD/CHF dropped 25 pips to .9535, while EUR/CHF continued its unusual rally and ended 9 pips higher at 1.2050.
Word on the street is that the SNB may move the EUR/CHF peg higher, which explains why EUR/CHF has been unusually lively as of late. Rumor has it that the central bank may lift the floor from 1.2000 to 1.2200.
If you think about it, there really is a solid case for a higher peg - Switzerland has been seeing weak economic activity and inflation lately, and a weaker franc could go a long way in boosting exports and diminishing threats of deflation.
In any case, keep an eye on the Swissy today! Aside from rumors of a shift in the SNB’s cap, the Swissy may react strongly to the upcoming foreign currency reserves report, which last revealed reserves of 408.6 billion CHF. If you want this report fresh off the press, catch it at 7:00 am GMT.
Finally some action on EUR/CHF! After breaking out of its slumber last Thursday, EUR/CHF followed up with a 100-pip rally from the 1.2050 area to the 1.2150 mark last Friday before closing slightly above the 1.2100 handle. USD/CHF, on the other hand, slid down the charts and closed at .9450.
Swiss foreign currency reserves jumped to 418.4 billion CHF in August while the July figure was revised up from 406.5 billion CHF to 408.6 billion CHF, showing that it was getting more and more expensive for the SNB to hold on to its EUR/CHF peg. A closer look at the figures would reveal that foreign reserves holdings are currently around 70% of their total output, prompting traders to speculate that the SNB might no longer be able to afford to keep intervening in the foreign exchange markets later on.
Although this report triggered a strong Swissy selloff during the London session, the franc was able to bounce back against the U.S. dollar during the New York session when the U.S. printed weaker than expected jobs data. It turns out that net hiring came in below expectations and even below the 100K threshold for August, sparking QE3 speculations yet again.
In terms of economic reports, the Swissy’s schedule is practically empty for the entire week, with the exception of the SNB monetary policy statement set on Thursday. With that, keep your eyes and ears peeled for any updates regarding the SNB’s currency intervention moves because these could have a huge impact on franc pairs.
The Swissy couldn’t make up its mind yesterday as it went one way against the euro and the other way against the dollar. EUR/CHF backed away from the 1.2100 handle as it settled 8 pips below its opening price at 1.2074 after reaching an intraday high of 1.2120. Meanwhile, USD/CHF recorded a 28-pip gain as it ended the day at .9463.
Bearishness for the Swissy seems to be tapering off now that it’s starting look as though the SNB will stick to its 1.2000 peg on EUR/CHF. According to a Reuters poll, 18 out of 20 economists believe the central bank will keep the cap on the franc at 1.2000 even if Greece were to get booted out of the euro zone. How’s that for faith in the SNB, eh?
That being the case, its possible that EUR/CHF may continue to slide back down. Who knows, it may even return to trading just above the 1.2000 handle!
No reports from Switzerland today, so sit tight and check out what the U.S. and euro zone have to offer!
Just like the other European currencies, the franc gave the scrilla a beating in yesterday’s trading action. USD/CHF set a new three-month low, falling 73 pips to finish at .9390.
Nothing lined up from Switzerland today, but make sure you pay close attention during the London session, as the German high court will be making its ruling on the constitutionality of the ESM. This will most likely dictate risk sentiment and price action today, so be on your toes!
It seems the Swissy still can’t decide if it wants to head over to the bull camp or chill with the bears. It strengthened against the dollar as USD/CHF closed 11 pips lower at .9379 after tapping an intraday low of .9341. Meanwhile, EUR/CHF continued its climb as it finished 15 pips higher at 1.2091.
Today, we’ve got a rare high-caliber event on the calendar for Switzerland as the SNB is set to hold its quarterly monetary policy assessment at 7:30 am GMT. It’s likely that no changes will be made to the SNB’s benchmark interest rate, which is already at zero. Also, most say we can expect SNB President Thomas Jordan to reaffirm the central bank’s stance on defending the EUR/CHF peg at 1.20.
If that happens, might it lead to a drop in EUR/CHF? Perhaps! The pair has been hanging around the 1.2100 handle these past few days thanks to euro strength, but also partly because rumors have been going around that the SNB may re-peg EUR/CHF… possibly at 1.2200!
In any case, it will be very interesting to hear what Switzerland’s policymakers have to say about the current state of the economy, seeing as it hasn’t been too healthy as of late. I can’t wait to see their new economic forecasts!
The Fed’s QE3 program triggered a wide-reaching case of dollar weakness, which the Swiss franc thoroughly enjoyed. USD/CHF, which had begun the day at .9379, closed the U.S. trading session 31 pips lower at .9379.
Economic data was positive for the Swiss franc too. The Producer Price Index that was released yesterday beat expectations. It came in with a 0.5% gain, opposite the 0.2% decline the market had initially predicted. It was also significantly better than the 0.3% decrease the month before.
In other news, the Swiss National Bank (SNB) announced in its interest rate decision that it would maintain the 1.2000 EUR/CHF floor. The central bank also reiterated its pledge to defend the level by purchasing “unlimited quantitates” of foreign currencies. The SNB’s foreign exchange reserve now stands at 446 billion USD, 64% higher from where it was at the beginning of the year.
No major data releases due in Switzerland today but there are a lot of tier 1 events scheduled to happen in the U.S like the CPI and the retail sales report. Keep an eye out for those!
On Friday, USD/CHF continued to drop on the charts like it’s hot! The pair opened at .9348 and traded lower all the way down to .9239 before closing the day at .9270. Way to go, franc!
Once again, the docket is clear for reports for the Swiss franc today. Will it be able to extend its gains? The answer would most probably depend on market sentiment. If risk appetite continues, then we would likely see USD/CHF tap a new monthly low. If not, I won’t be surprised to see the pair trade higher.
With no big data on tap, USD/CHF pretty much stuck within range and consolidated yesterday. USD/CHF closed at .9280, just 3 pips above its opening price.
Once again, no hard data lined up for us today from Switzerland, but that doesn’t mean you can sit back and play video games all day. Make sure you stay on your toes, as you never know what might rock the markets!
Bad news from Switzerland spelled trouble for the Swiss franc yesterday. Just like most higher-yielding counterparts, the currency suffered a loss to the dollar. USD/CHF closed the day higher at .9285 after opening at .9273.
SECO downgraded it’s growth forecast for Switzerland. After initially predicting GDP to come in at 1.4, growth for 2012 is now seen to come in at 1.0%.
Our forex calendar is now blank for top-tier reports for the franc. This probably means that we’ll see market sentiment dictate the currency’s price action in today’s trading. With that said, keep in mind that the franc usually rallies when risk appetite and doesn’t do so well when risk aversion is in play. Good luck!