Tag Archive: EUR/CHF

FX Daily, August 21: Dollar Edges Higher, While Equities Trade Heavily to Start the New Week

2017-08-21

by

2017-08-21

The US dollar is mostly firmer against most of the major and emerging market currencies. The main impetus appears to be some position adjustment emanating from equities. The equity markets turned south in the second half of last week and are moving lower today. Foreign investors appeared to have sold around $100 bln of European equities in 2016 and bought around a third back this year.

Read More »

Weekly Speculative Positions (as of August 15): Speculators Add to Sterling and Peso Shorts, While Cutting Euro and Canadian Dollar Longs

2017-08-21

by

2017-08-21

The net speculative CHF position has fallen from -1.4K short to -1.2K contracts short (against USD). Speculators made several significant position adjustment in the CFTC reporting week ending August 15, that included an escalation of aggressive rhetoric by the US and North Korea.

Read More »

FX Weekly Review, August 14 – August 19: CHF Recovers after Dovish Draghi Comments

2017-08-20

by

2017-08-20

EUR/CHF and USD/CHF, August 19
The euro has lost some momentum, Draghi does not want to talk about an early end of his bond buying programming. Confirmed by economic data, 1.2% core inflation compared to a long-term inflation target of 2%. Consequently the Swiss appreciated during the week.

Read More »

FX Daily, August 17: Euro Softens on Crosses, Treasuries Stabilize

2017-08-17

by

2017-08-17

The US dollar had steadied after softening in the North American afternoon yesterday when the dissolution of President Trump's business councils as a series of executives stepped down.  The FOMC minutes added more fuel to the move. 

Read More »

FX Daily, August 16: Swiss Franc and Yen Improve after Dovish Draghi Comments

2017-08-16

by

2017-08-16

Swiss Franc and Yen Improve after Dovish Draghi Comments, A return to the macroeconomic agenda is being deterred by new drama from Washington and reports suggesting that ECB's Draghi will not be discussing the central bank's monetary policy course at Jackson Hole confab, which will take place next week.

Read More »

FX Daily, August 15: Greenback Firms, Encouraged by Dudley and Ebbing of Tensions

2017-08-15

by

2017-08-15

NY Fed President Dudley appears to have stolen any potential thunder in the July FOMC minutes that will be released tomorrow. While we put more emphasis on today's US retail sales data and the August Fed surveys, many others argued that the minutes were the key report this week.

Read More »

FX Daily, August 14: Sigh of Relief Weighs on Yen and Gold, while Lifting Equities and the Dollar

2017-08-14

by

2017-08-14

The lack of new antagonisms over the weekend between the US and North Korea has prompted the markets to react accordingly. Already before the weekend, we detected some signs that at least some market participants had begun looking past the dramatic rhetoric.

Read More »

FX Daily, August 11: Geopolitical Tensions Remain Elevated into the Weekend

2017-08-11

by

2017-08-11

There has been no apparent attempt by either North Korea or the United States to ease the rhetorical flourishes that have made global investors nervous. Risk assets were liquidated, and the funding currencies, particularly the Japanese yen and Swiss franc were bought back. The yen gained nearly 1.6% this week, ahead of the US session, while the Swiss franc gained 1.3%.

Read More »

FX Daily, August 10: Tensions Remain Elevated, Dollar Firms

2017-08-10

by

2017-08-10

It is difficult to walk back the saber-rattling rhetoric. US Secretary of State Tillerson tried to defuse the situation, which had appeared to ease nerves in North America yesterday. However, references to the modernization of US nuclear forces, a multi-year project begun last year, spurred a fresh threat by North Korea to fire four intermediate range missiles near Guam in week's time.

Read More »

FX Daily, August 09: North Korea lets EUR/CHF Collapse

2017-08-09

by

2017-08-09

The bellicose rhetoric from the US and North Korean officials is the main driver today. We would qualify that assessment by noting that first, the market moves are rather modest, suggesting a low-level anxiety among investors. Second, pre-existing trends have mostly been extended. Turning to Asia first, the Korea's equity market fell 1.1%. The Kospi has fallen for the past two weeks (~2.2%).

Read More »

FX Daily, August 07: Outlaw Mondays

2017-08-07

by

2017-08-07

The US dollar is narrowly mixed to start the new week. Two main developments stand out. First, the dollar-bloc currencies are trading heavily. The Australian dollar is pushing lower for the fifth consecutive session. The greenback is advancing against the Canadian dollar for the sixth consecutive session. The New Zealand dollar is weaker for the fifth time in six sessions.

Read More »

Weekly Speculative Positions (as of August 01): Speculators Press Ahead with Dollar-Bloc Currencies, but Hesitate with Euro and Yen

2017-08-07

by

2017-08-07

The net speculative CHF position has risen from -1.5K short to 1.4K contracts long (against USD). In the CFTC reporting week ending August 1, speculators in the futures market continued to build long exposure in the dollar-bloc currencies. In the three sessions after the reporting period closed, the dollar-bloc currencies have traded heavily.

Read More »

FX Weekly Review, July 31 – August 05: Second Week of Strong CHF Losses

2017-08-06

by

2017-08-06

EUR/CHF and USD/CHF, August 05
The Swiss Franc entered the second week of stronger losses. While the euro gained 4% last week, the dollar appreciated against the Swiss Franc 2% during this week.

Read More »

FX Daily, August 04: Does the Employment Report Matter?

2017-08-04

by

2017-08-04

There are some chunky option strikes that could come into play today. There are 920 mln euros struck at $1.1850 that expire today. There are A$523 mln struck at $0.7950 expiring today. There are $680 mln struck at CAD1.2550 that will be cut.

Read More »

FX Daily, August 03: Dollar-Bloc Currencies Turning, but Euro Downticks Limited

2017-08-03

by

2017-08-03

The high-flying dollar-bloc currencies may be a preliminary sign market change. The US dollar is gaining on the Canadian dollar for the fourth consecutive session. It is probing resistance we identified in the $1.2620 area. The US dollar has not traded above its 20-day moving average since the Fed hiked rates on June 14. It is found today near CAD1.2625.

Read More »

FX Daily, August 02: Euro Climbs Relentlessly, While Greenback is Mixed

2017-08-02

by

2017-08-02

The euro's strength is surely partly a reflection of US dollar weakness, but it is also a reflection of the improved sentiment among investors. The initial dollar losses at the start of the year was largely a correction that is common after a Fed hike. This is more or less what happened at the start of 2016 as well, following the Fed hike in December 2015.

Read More »

Swiss franc slides 4 percent in one week

2017-08-01

by

2017-08-01

On 24 July 2017, the Swiss franc was 1.101 to the euro. One week later on 31 July 2017 it was 1.145, according to Bloomberg. Over the month it dropped from 1.095 to 1.145, a drop Reuters described as the biggest monthly drop in six years. The Swiss National Bank (SNB) has been working hard to bring down the value of the Swiss franc. Speaking to the newspaper Le Temps last week, SNB president Thomas Jordan described the currency as “significantly...

Read More »

FX Daily, August 01: The Most the Dollar Can Hope for on Turn Around Tuesday is Consolidation

2017-08-01

by

2017-08-01

After taking a step lower in the North American session yesterday, the dollar is consolidating today. The euro is holding above $1.18, and the dollar held JPY110.00. Global equities are mostly higher, while bonds are mixed. Asia-Pacific yields were mostly higher, while European rates are a little lower. The US 10-year yield is flat just below 2.30%.

Read More »