Tag Archive: USD/CHF

FX Daily, February 28: It Takes Powell to Convince the Market that Yellen was Right

Many market participants think they heard Fed Chair Powell give a fairly strong signal that he favored a more aggressive course. The implied yield on the December Eurodollar futures rose five basis points to 1.535%. The December Fed funds futures contract rose three basis points.

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FX Daily, February 27: Markets Tread Water; Powell is Awaited

The capital markets seem unusually subdued. The US dollar is mostly slightly firmer, except against the euro and Swiss franc among the majors. The MSCI Asia Pacific Index managed to eke out a small gain (0.2%), for a third advancing session, without the help of China, Taiwan, Korea or India. It was really a Japanese story. The Nikkei rallied 1.1%, while excluding Japan the MSCI benchmark was off 0.25%.

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FX Daily, February 26: Dollar Slides as Equities Extend Recovery

The US dollar has begun the new week on heavy footing. It is being sold against virtually all the currencies, major and emerging market currencies. There is one exception, and although the local market is not open, the Mexican peso is under some pressure that could be linked to a dispute between the President of Mexico and the US that prompted the former to cancel a visit to the latter.

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FX Daily, February 23: Dollar Firms; VIX Set to Close Lower for Second Week

A light economic schedule in North America may help the markets close the week on a quiet note. Perhaps if there is one number that captures this sense, it may be the VIX. It is soft and barring a new disruption today, it is poised to close lower for the second consecutive week, for the first time this year. The US dollar is steady to higher today and barring a reversal, will close stronger on the week against the major currencies.

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FX Daily, February 22: All Eyes on Equities

The dramatic reversal of US shares yesterday in the last hour of trading has once again pulled the proverbial rug beneath the feet of investors. The turn down, moreover, occurred near important technical levels, seemingly adding to the significance. Global equities have followed suit.

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FX Daily, February 21: Markets Mark Time

The economic data stream is picking up, but there is an uneasy calm in the markets. It is almost as if the dramatic drop in stocks has left many with a sense of incompleteness, like waiting for another shoe to drop. The price action has not clarified the situation very much. The equity markets are stalling in front of important chart points as are yields and the dollar.

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FX Daily, February 20: Dollar Trades Higher, but Stocks Challenged at Key Chart Point

The dollar is finding better traction today, building on the upside reversal seen before the weekend. The news stream has been light and it seems like primarily an issue of positioning rather than a change in sentiment or the consensus narrative. The focus has shifted from monetary policy and idea that the ECB and BOJ are exiting their extraordinary monetary policy to return of the twin deficit problem in the US.

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Weekly Technical Analysis: 20/02/2018 – USD/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF

The USDCHF pair approached our waited target yesterday, represented by the bearish channel’s resistance that appears on the above chart, noticing that the price faces good resistance at the EMA50, which forms negative pressure that we expect to push the price to resume its main bearish track again.

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FX Daily, February 19: Monday Market Update

The US dollar is narrowly mixed in uneventful turnover. Of note, the dollar selling seen in Asia last week slacken today and the greenback moved above the pre-weekend highs seen in the US. It is the first time in eight sessions, the dollar has risen above the previous day’s high against the yen. Europe seems to be losing interest though, with the dollar near JPY106.60.

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FX Daily, February 16: Worst Week for the Dollar since 2015-2016, While Stocks Continue to Recover

Nearly all the major currencies have risen at least two percent against the US dollar this week. The Canadian dollar is an exception. It has risen one percent this week ahead of today's local session. Sterling is becoming another exception after disappointing retail sales. It is up just shy of two percent. The Dollar Index is off 2.3% on the week, which would be the biggest weekly loss since 2015.

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FX Daily, February 15: Stocks Jump, Bonds Dump, and the Dollar Slumps

The significant development this week has been the recovery of equities after last week's neck-breaking drop, while yields have continued to rise. The dollar has taken is cues from the risk-on impulse from the equity market and the sales of US bonds more than the resulting higher yields. Asia followed US equities higher.

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FX Daily, February 14: Investors Remain Uneasy even as Equities Stabilize

There is an unease that continues to hang over the market. It is as if a shoe fell last week, and most investors seem to be waiting for the other shoe to drop. It is hard to imagine the kind of body blow that the equities took last week without some kind of follow through and knock-on effects. Moreover, the focus today on US CPI may prove for nought.

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FX Daily, February 13: Tuesday’s Two Developments

There are two important developments today. First, the recovery in the global equity markets is being challenged. Second, the yen has strengthened across the board, and is now at its best levels against the dollar since last September's low. The MSCI Asia Pacific Index extended Monday's recovery with another 0.5% gain. However, looking closer, the momentum faltered.

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FX Daily, February 12: Equity Markets Find Firmer Footing, Dollar Softens

The most important development today has been the stability in the equity markets after last week's meltdown. The recovery from new lows in the US before the weekend set the tone for today's moves. Tokyo markets were on holiday, and the MSCI Asia Pacific Index excluding Japan snapped a seven-day slide with a nearly 0.6% gain.

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Weekly Technical Analysis: 12/02/2018 – USD/JPY, EUR/USD, GBP/USD, WTI Oil Futures, USD/CHF

The USDCHF pair trading settles below the previously broken support that appears in the image, while stochastic provides negative overlapping signal on the four hours time frame, which supports the continuation of our bearish trend expectations in the upcoming sessions, reminding you that our next target at 0.9254.

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FX Daily, February 09: Equity Sell-Off Extends to Asia, but More Muted in Europe

The 100-point slide in the S&P 500 and the 1000-point drop in the Dow Jones Industrials yesterday spurred more bloodletting in Asia. The 1.8% drop in the MSCI Asia Pacific Index (for a 6.7% loss for the week) may conceal the magnitude of the regional losses. At one point the CSI 300 of the large Chinese mainland shares was off more than 6% before closing off 4.3% (and 10% for the week). The H-shares index was down 3.9% and 12% for the week.

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FX Daily, February 07: Guns and Butter May Resolve US Legislative Logjam

After a volatile session in North America, the major equity indices closed higher. In fact, the 1.75% rise in the S&P 500 was the best since November 2016. Asian equities stabilized, and the MSCI Asia Pacific Index was able to eke out a small gain. The European markets are moving higher is also posting early gains and the Dow Jones Stoxx 600 is about 0.45%, which threatens to snap the seven-day slide. However, the main challenge now is that the S&P...

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Weekly Technical Analysis: 05/02/2018 – USD/JPY, EUR/USD, GBP/USD, AUD/USD, USD/CHF

The USDCHF pair traded with clear negativity yesterday to approach our waited target at 0.9418, to keep the bullish trend scenario active until now, being away that it is important to monitor the price behavior when touching the mentioned level, as breaching it will push the price to extend its gains and head towards 0.9530 as a next station, while its stability will push the price to decline again.

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FX Daily, February 06: Recovering US Equities Puts Floor Under Europe after Asia Tanks

After the dramatic fall in US equities, Asian equities followed suit. The MSCI Asia Pacific Index fell 3.4% following Monday's slide of 1.7%. European bourses gapped lower and spent most of the morning moving higher, though large gaps remain. At its worst, the Dow Jones Stoxx 600 was off about 3.3%, and at the time of this writing, it is half as much. US equities initially extended yesterday's losses, but the S&P 500 has turned higher in the...

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