Post Tagged with: "EUR/CHF"
The allure of a safe-haven (Video)
One of the more remarkable developments during January was the relatively strong performance of the traditional safe-haven currencies, principally the yen and Swiss franc. We wrote about this during the course of last month, but the Swissie is particularly under the spotlight, given the proximity of EUR/CHF to the 1.20 floor imposed by the SNB
Ratings Downgrade Would Trigger a Cataclysmic Sell-Off
The French downgrade, which is rumored as coming any minute, isn’t priced in yet. The actual move means that the core is officially hit by the debt crisis, says Christopher Vecchio of DailyFX. In the interview below, Vecchio discusses actions by the ECB, the decoupling of the US from the rest of the world and
The problems emerging for 2012
Even though India left interest rates unchanged this morning, as broadly expected, there were hints of rate cuts to come from the central bank governor, leaving scope for rates to come down from the current 8.50% level. The pattern we have seen in the BRICs recently (Brazil, Russia, India and China) has been concerning to
Dollar dominance [Video]
Although the euro’s decline below 1.30 is attracting much of the attention in FX markets, it is actually the continuing surge in the dollar which ought to be generating just as much interest. The dollar index jumped to 80.5 yesterday, not that far from the high for the year recorded in the first few days
EUR/CHF Collapses As SNB Doesn’t Intervene to Further Weaken the Franc
The Swiss National Bank didn’t raise the floor under EUR/CHF. It didn’t make a new effort to weaken the Swiss franc. Many had expected that the Swiss would lift the peg from 1.20 to 1.25 or even 1.30. This didn’t happen. This sends EUR/CHF falling sharply from 1.2350 to 1.2250 and the pair is still
Lose-Lose Situation for the Euro
If the ECB continues its policy regarding bond buying, the euro is set to fall. If it launches QE, it will likely follow the path of the greenback after QE2, with one specific euro cross set to gain. Christopher Vecchio of DailyFX analyzes the current situation of the euro, the bright side for the pound in the
UK deficit-reduction strategy on track
The UK is a fiscal test case that many are watching closely. The economy has ground to a halt over the past nine months but the government is sticking to its plans to rein in the deficit. The borrowing numbers released on Friday show that the deficit is currently on track to meet the targets
High-profit risk positions closing out
Now that European leaders finally understand that perpetual dithering on the sovereign debt and banking crisis could spell death for their economies, it appears that hedge fund managers and traders have collectively decided to progressively close-out those incredibly profitable short risk asset positions. This theme is one we have been highlighting over the past week,
Market Direction To Become Clearer After Wednesday
Christopher Vecchio, a currency analyst with DailyFx.com discusses the upcoming FOMC meeting and sees a small chance for big move. He analyzes the impact on commodity currencies, oil and gold and sees a negative outcome for them. Vecchio also discusses the situation in the euro zone and lays out an option of a split with
SNB Reaffirms Intervention – EUR/CHF and EUR/USD Rise
In the quarterly rate decision, the Swiss National Bank reaffirmed the decision to put a floor of 1.20 under EUR/CHF. The move boosts EUR/CHF which was getting too close to this floor. It also indirectly pushed EUR/USD higher within the rising channel. The huge Swiss intervention only had a temporary effect on EUR/USD when it