What risk aversion?! The franc got stuck in Loserville yesterday as both USD/CHF and EUR/CHF posted gains.
We didn’t see any report printed from Switzerland yesterday, so the franc pairs’ price action might have had something to do with its counterparts’ strength rather than franc weakness.
Will the franc bulls hustle some muscle today? We won’t be seeing any Swiss data today, but a couple of major reports from the U.S. might trigger risk appetite or risk aversion across the board. Y’all better be ready in case we see huge moves, aight?
The risk-off trading environment was just too much for the franc to handle yesterday! The Swiss currency gave up more ground to the U.S. dollar, pushing USD/CHF up to a high of .9004. Will the former support area at .9000 hold as resistance from now on?
There were no reports released from Switzerland yesterday, leaving the Swissy with nothing to hang on to when risk aversion started wiping out the gains of the higher-yielding currencies. Today could be a better one though, as Switzerland is set to print its UBS consumption indicator and KOF economic barometer. The consumption indicator is expected to improve from the previous 1.32 reading while the KOF economic barometer could rise from 1.53 to 1.56.
If you’re planning on trading USD/CHF though, bear in mind that there might be a few game-changers from the U.S. economy. The ADP jobs report and the FOMC statement are both on today’s schedule so brace yourselves for potential fireworks during the U.S. session. Good luck!
While other currencies ended the day with decisive moves against its counterparts, the franc moved in all directions against the dollar and the euro. USD/CHF spiked both ways before ending the day 4 pips above its open price. Meanwhile, EUR/CHF closed with a 5-pip loss.
The franc enjoyed small gains during the early London session when the UBS consumption indicator and the KOF economic barometer both showed upside surprises.
Will we see more decisive price action today? Switzerland won’t be printing any report today but I see from my economic calendar that we’ll see big news from other major economies!
Nope, not today! The Swiss franc passed up another chance to move higher against the U.S. dollar, as USD/CHF climbed higher above the .9000 handle instead. Against the euro though, the franc was able to enjoy a lot of gains, as the shared currency was having a bad day.
There were no reports released from Switzerland yesterday, which explains why the franc had trouble trying to recover against the U.S. dollar. For today, Switzerland will print its SVME PMI report and possibly show a small improvement from 55.3 to 55.4. Keep in mind that a much stronger than expected reading could give a big boost for the franc, so don’t forget to check out the actual release at 9:30 am GMT.