Tag Archives: FX Daily

Swiss Franc The euro-Swiss is moving back to reality, after the risk-on run in the beginning of the week. The continued yen weakening is slightly negative for the franc given that some algorithms correlate the two safe-haven currencies. Click to enlarge. United Kingdom After a nearly three weeks of turmoil following the UK referendum, there is now a sense of order returning to UK politics. Two elements of the new...

Swiss Franc Improving US job data also helped to increase demand for EUR/CHF long. For last week’s sight deposits see here. Click to enlarge. The combination of the rebounding US job growth and gains in the S&P 500 to near record levels before the weekend is helping boost the US dollar against the major currencies, while the emerging market currencies are mixed.  In addition, indications that Japan will put...

Swiss Franc Click to enlarge. Brexit Amid a better if not strong risk appetite, sterling has rallied two cents from yesterday’s lows near $1.28 to poke through the $1.30 level in the European morning. Click to enlarge. United Kingdom It was helped by an industrial production report that was better than expected. Industrial and manufacturing output fell 0.5% in May. This was around half of the expected decline...

Swiss Franc Once again the SNB was heavily intervening and the pound fell against both euro and CHF.Thanks to SNB interventions, the Euro did not even dip under 1.08. Click to enlarge. Brexit What a difference a few days make.  Many saw last week’s equity market advance a sign that Brexit anxiety was overdone. However, quarter-end position adjustments appear to have been misread.  Equity markets are falling now....

  Swiss Franc and SNB interventions It was another day of heavy SNB interventions. The central bank kept the euro nearly stable. As we explained before, she recycled sterling inflows in CHF into euros. Based on the magnitude of the GBP decline against EUR (see below), we estimate 2 to 4 bn CHF interventions. Click to enlarge.   Brexit The British pound has been hammered to fresh lows just above $1.3115. The euro is...

EUR/CHF stronger in Brexit week The EUR/CHF finished the week after Brexit with slight improvement of 0.18% (see the FX performance table below). The scare mongering by the Swiss media was misplaced.  The euro even recovered from a dip after BoE governor Carney’s comments on Thursday. We do not see strong SNB interventions at this elevated price level. We judged that the interventions happened below 1.08. Click to...

Swiss Franc  During the weak the Swiss Franc lost momentum. It could regain speed only on June 30. The stronger Franc was initiated by remarks  by BoE governor Carney. Sterling stayed on the defensive on Friday after unambiguously dovish comments from the Bank of England abruptly ended a tentative recovery in the currency, while the euro wobbled on speculation of more stimulus in Europe. Still trying to get over...

FX Rates No fundamental development can compare with the UK decision to leave the EU. It has set off a chain reaction whose outcome is still far from clear.   Sterling is firm, alongside most of the major and emerging market currencies today.  Sterling narrowly edged above yesterday’s highs to reach almost $1.3425 before encountering selling pressure. Click to enlarge. Equity fund managers may find themselves over...

The global capital markets are stabilizing for the first time since the UK referendum.  It is not uncommon for markets to move in the direction of underlying trends on Friday’s; see follow-through gains on Monday, and a reversal on Tuesday.  That is what is happening today.  Turnaround Tuesday after such dramatic price action over the last two sessions has the feel of the proverbial dead cat bounce. Brexit There has...

Summary Sterling falls through last week’s low. Spanish election results suggest a UK is not necessarily a harbinger to anti-globalization forces. Yuan sells off and China breaks diplomatic contact with Taiwan. FX Rates Sterling has been sold beyond the panic low seen when it became clear that UK voters were choosing to leave the EU though nearly every economists warned of at least serious short- to...