Tag Archives: 4) FX Trends

Deutsche bank analysts suggest that at current spot levels, risk-reward favours longs in EUR/CHF. Key Quotes “While Brexit and trade war outcomes look like coin tosses, the impact is likely to be asymmetric as the SNB caps the left tail. While a relief rally would be fully accommodated, they would likely intervene heavily and cut the policy rate in the event of no deal.” “Last week’s change to the tiering system prepared the ground for emergency rate cuts by...

Swiss Franc The Euro has fallen by 0.03% to 1.0874 EUR/CHF and USD/CHF, September 24(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: A fragile calm hangs over the capital markets today. Equities in Asia Pacific were narrowly mixed. Japan, China, and HK advanced. India saw some profit-taking after a two-day surge in response to the unexpected corporate tax cuts but recovered in late dealings. European shares are...

We have argued that the road to an orderly Brexit remains arduous and that sterling had entered an important technical area ($1.2500-$1.2530). At the same time, see the dollar as having approached the upper end of its broad trading range against the yen. One of the important drivers lifting the dollar was the dramatic rise in US yields. We thought that move is counter trend and that yields are headed lower again. These views could be expressed in a short-sterling...

Swiss Franc The Euro has fallen by 0.24% to 1.089 EUR/CHF and USD/CHF, September 23(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The critics who claim the ECB’s policy response was disproportionate got a rude shock today with the unexpected weakness revealed by the flash PMI. The euro looks to re-visit the lows set recently near $1.0925. Sentiment has also been eroded by the poor South Korean export figures....

USD/CHF remains modestly changed above 13-day-old rising trend-line, 21-day EMA. An ascending trend-line from August 13 adds to the support. August month top, 61.8% Fibonacci retracement level challenge buyers. The USD/CHF pair’s failure to provide a decisive break above August high seems to not disappoint buyers, even for short-term, unless the quote trades below key support-confluence. Prices seesaw around 0.9910 while heading into the European open on Monday. The...

EUR/CHF risk reversals have jumped to the levels last seen in May.  Risk reversals indicate the demand for call options is rising. Risk reversals on EUR/CHF (EURCHF1MRR), a gauge of calls to put, jumped to the highest level since May on Friday, indicating the investors are adding bets to position for a rally in the common currency. The one-month risk reversals rose to -0.75, the highest level since May 10. The negative print indicates the implied volatility premium...

AUD/CHF is in the midst of a sell-off which could extend beyond a 38.2% retracement for a 50% reversion.  A subsequent pull-back, however, to the resistance and another sell-off will likely make for a high probability set up. AUD/CHF is in the midst of a sell-off which could extend beyond a 38.2% retracement of the August lows to September highs,  located at 0.6715, and target the 50% retracement at 0.6674 (meeting the 2019 lows) should the markets continue to...

Swiss Franc The Euro has fallen by 0.25% to 1.0932 EUR/CHF and USD/CHF, September 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: A word of optimism on a Brexit deal has sent sterling to its best level in two months. Corporate tax cuts sparked a more than 5% rally in Indian stocks as the week draws to a close. The MSCI Asia Pacific Index snapped a four-day losing streak to pare this week’s decline.  Europe’s...

USD/CHF extends Thursday’s downpour, nears short-term key supports. An upside break of 0.9985 could recall June month highs. Given the failure to rise past-0.9980/85 area, USD/CHF carries the previous day’s declines while trading around 0.9913 ahead of the Europe markets open on Friday. The bearish signal from 12-bar moving average convergence and divergence (MACD) indicates brighter chances of pair’s further declines to 100-bar moving average on the four-hour chart,...

Swiss Franc The Euro has fallen by 0.22% to 1.0975 EUR/CHF and USD/CHF, September 19(see more posts on EUR/CHF, USD/CHF, ) - Click to enlarge FX Rates Overview: Central bank activity is still very much the flavor of the day, but investors are looking for the next focus. The Bank of Japan and the Swiss National Bank stood pat, while Indonesia cut for the third consecutive time and the Hong Kong Monetary Authority and Saudi Arabia quickly followed the Fed. Brazil...