Tag Archives: FX Trends

Swiss Franc EUR/CHF - Euro Swiss Franc, November 29(see more posts on EUR/CHF, ). - Click to enlarge FX Rates The US dollar correctly lowered yesterday, but most of the selling was over by the end of the Asian session, and the greenback steadied in Europe and North America.  The dollar is firm against the euro and yen but within yesterday’s broad trading ranges.  The Australian and Canadian dollar’s gains from...

The US dollar has rallied against both the Japanese yen and Chinese yuan since the end of September.  Through today, the yen has fallen 9.8% and the yuan has fallen by 3.5%. What they have in common is the rise in US interest rates relative to their own.   Since September 30, the US 10-year yield has from below 1.60% to above 2.40% at the end of last week.   Japan’s 10-year yield has risen from minus nine basis points...

Swiss Franc EUR/CHF - Euro Swiss Franc, November 28(see more posts on EUR/CHF, ). - Click to enlarge FX Rates As soon as markets opened in Asia, the greenback was sold, and corrective forces that had been nipping below the surface took hold. The euro, which had finished last week below $1.0590, rallied nearly a cent. Before the weekend, the greenback had pushed to almost JPY114, an eight-month high,  before...

Summary: Forces emanating from the US and Europe are driving the capital markets. The moves may be stretched technically, but the market adjustment has further to run as not even two Fed hikes are discounted for next year. European political concerns and an ECB expected to continue its asset purchases have driven German 2-year yields to new record lows. There are powerful moves underway in the capital...

Swiss Franc Currency Index At least against the Swiss Franc index, the dollar index could further advance last week. We had observed SNB interventions in the previous week that kept the euro mostly above 1.07. Investors were hedging against the Trump reflation trade and potential inflation that comes with it. Trade-weighted index Swiss Franc, November 25(see more posts on Swiss Franc Index, ). Source: FT.com -...

So where will mobile capital flow in an environment of rising socio-political risk, a multi-year USD uptrend and a dearth of safe, liquid markets? On October 3rd I asked Is the U.S. Dollar Set to Soar? It seems the answer was yes. Here’s the weekly chart of the USD I posted on October 3rd: US Dollar Index - Cash SettleUS Dollar Index - Cash Settle - Click to enlarge And here’s the current weekly chart of the...

Swiss Franc EUR/CHF - Euro Swiss Franc, November 25(see more posts on EUR/CHF, ). - Click to enlarge FX Rates The US dollar’s recent gains are being trimmed today, and it is down against all the major currencies. Many emerging market currencies, including the Turkish lira, Indian rupee, and Hungarian forint are firmer today. The dollar’s losses are minor, and the forces that drove it higher remain intact. One of...

Summary: Euro fell to new 20-month lows before steadying. The dollar extended its recovery against the yen. Emerging markets remained under pressure, and Turkey’s central bank surprised with a 50 bp hike in the repo rate. While US markets were closed for the celebration of Thanksgiving, the underlying trends remained intact. Here is a summary of several developments. The euro edged to a new low, a little below...

Swiss Franc EUR/CHF - Euro Swiss Franc, November 23(see more posts on EUR/CHF, ). Source: - Click to enlarge The GBPCHF rate has slipped a little in early morning trading today as investors await the UK budget due today. Amongst the usual leaks and rumours there appears likely to be a budget which will not be overly generous as some expect but will seek to keep the UK economy on a fairly stable course. UK...

Swiss Franc Switzerland Trade Balance, October 2016(see more posts on Switzerland Trade Balance, ). Source: Investing.com - Click to enlarge Sterling has seen huge gains vs the Swiss Franc during today’s trading session as Prime Minister Theresa May spoke out in an attempt to reassure the UK economy. It was one of the most positive speeches since her she took her position and she suggested that the UK would be...