Swiss franc news - page 5
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EUR/CHF - Swiss National Bank bank meet this week - what to expect
Preview of the SNB monetary policy meeting on June 18Yep, that's right, the Federal Reserve is not the only central bank meeting this week, we've also got the "we will never remove the CHF cap, oh wait, we've removed the cap" crowd too.
What to expect from the announcement?
What the SNB will be looking at:
Stay tuned to ForexLive as we approach the meetings this week (both the FOMC and SNB) for more
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USD/CHF forecast for the week of June 22, 2015
The USD/CHF pair initially rallied during the course of the week but turned back around to fall to the 0.7175 handle. We believe that there is a significant amount of support all the way down to the 0.90 handle, and with that it’s going to be difficult to sell. We don’t really want to buy though, because quite frankly there’s no opportunity to buy a supportive looking candle Lake we would hope. With that, we are on the sidelines and believe that the USD/CHF pair will continue to be the domain of short-term traders.
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Swiss franc broadly lower after Jordan comments
The Swiss franc turned lower against the dollar and the euro on Thursday after Swiss National Bank Chairman Thomas Jordan reiterated the currency was overvalued and said the bank would continue to intervene in currency markets to weaken it.
USD/CHF was up 0.57% to 9389 following the remarks from around 0.9345 earlier, while EUR/CHF was at 1.0511 from 1.0475 beforehand.
The drop in the Swissy came after the SNB chairman warned that it is “considerably overvalued” and added that the bank will continue to weaken it by intervening in currency markets and maintaining negative benchmark interest rates and negative rates on franc deposits.
"The global economy has been in a nearly permanent state of crisis for almost eight years," Jordan said. "The pressure on the franc is the mirror image of this."
The comments came during a speech in Lausanne.
The Swiss franc is seen as a safe haven investment because of Switzerland's current account surplus, which means it’s not reliant on foreign investment to fund its budget.
Last week the SNB maintained its rate on sight deposits at minus 0.75% and left the target range for the three-month Libor unchanged at between minus 1.25% and minus 0.25%.
Negative rates effectively mean banks are paying the central bank to hold their money.
Concerns over Greece’s fraught debt negotiations continued to weigh on market sentiment ahead of the looming deadline for Greece to repay €1.6 billion to the International Monetary Fund on June 30.
If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.
Negotiations faltered on Wednesday after Greece’s creditors rejected some of its latest proposed reforms and presented the government with counter proposals for a deal to unlock bailout funds.
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USD/CHF: Greenback Slides on Euro Resilience
The EUR/USD pair managed to edge higher from intraday lows and hiked above $1.12, which in turn pushed USD/CHF down to trade around ₣0.9330 during the London session on Friday.
The pair will likely retest the stronger support area at ₣0.93 later in the session, with traders looking for more impetus.
During US trading hours, the University of Michigan confidence gauge for June is due and is expected to remain at May's level of 94.6. Consumer confidence remains near multi-year highs, mainly due to lower oil prices and record high stock markets.
Moreover, the PCE deflator index came in line with expectations on Thursday, reaching 0.2% on an annual basis, the same level as the upwardly revised reading booked in April. Meanwhile, the core PCE index hit 1.2% in May, marginally declining from the revised 1.3% seen previously.
As for the other macro news, personal spending rose more than expected, jumping to 0.9% in May from 0.1% previously, while the market survey anticipated a hike of 0.7%. Personal income grew as anticipated at 0.5% in May, keeping the same pace as the revised April figure.
Meanwhile, initial jobless claims ticked higher to 271,000, from a revised 268,000.
On Wednesday, US GDP came out somewhat positively, when it decreased 0.2% in the first quarter of 2015, improving from the downwardly revised -0.7% in the second estimate, the US Bureau of Economic Analysis advised. However, a very large build in private inventories of $99.5 billion, which added 0.45 of a percentage point to GDP, is relatively negative for the second quarter.
"The IMF is now calling on the Fed to abandon the DOTS form of communication to the market. They say this form of communication is confusing. We think the IMF is talking more sense here as the median rate may not be providing an accurate reflection of the FOMC as a whole but there is little chance of this form of communication being abandoned. The FOMC probably see the DOTS path as helping to contain financial market volatility at present," analysts at Bank of Tokyo-Mitsubishi wrote in a note on Friday.
The latest dot chart revealed that the majority of governors see only one rate hike in 2015 and with a more gradual pace in 2016. Analysts had previously expected two rate hikes in 2015 and steeper rate hikes in 2016. The dot chart does not represent the future, but only indicates the possible way of rates in the future, so its a subject to change.
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SNB's Jordan says they have intervened in forex market
Just out on the wires and going some way to explain the euro demand so far this morning
EURCHF 1.0410 off the 1.0428 highs after lows of 1.0312 in Asia
The SNB will probably have been soaking up a few euros in Asia too in order to prevent further losses in thin conditions
We know they're between a rock and a hard place and have been in the market previously to "smooth" since the Jan 15 debacle but this very public stance/intervention will be intended to frighten a few traders off or at least think twice.
Update:
EURCHF lower again at 1.0390, USDCHF also off its highs at 0.9385
EURUSD steady-ish at 1.1070
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SNB is becoming a symbols of all worst in forex
SNB is becoming a symbols of all worst in forex
ECB and FED are worse - just better hiding what are they doing. QE is the biggest scamm in the history
EUR/CHF forecast for the week of July 6, 2015
The EUR/CHF pair rose during the course of the week, maintaining the consolidative area that we have been in for some time. Just as we have seen for several weeks now, every time this market trends reach above the 1.05 level, sellers step back in. However, the buyers are more than willing to get involved here the 1.03 level, which forms a very nice short-term trading range. However, if you’re a longer-term trader this is a bit of a pain. With that, longer-term trades aren’t even a thought at the moment.
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Swiss Monthly Inflation Remains Positive in June
Consumer price growth in the Alpine country remained positiveon a monthly basis after a series of volatile readings posted over the past few months, and the annual gauge still remained very weak, the latest CPI data from the Swiss statistic office showed.
Measured month-on-month, the CPI posted a 0.1% increase in June, compared with the 0.2% increase seen in May, while analysts had forecast a 0.1% rise for the reported period.
Meanwhile, the cost of living in Switzerland declined 1.0% compared to the same period a year ago and slightly below market consensus of a 1.2% decline.
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USD/CHF forecast for the week of July 13, 2015
The USD/CHF pair went back and forth during the course of the week, testing the 0.95 level for resistance. However, if this market simply going sideways and as a result there isn’t much of a trade for longer-term traders. In fact, we would wait until we get above the 0.96 level in order to start buying this market. As far selling is concerned, we don’t really have any interest at this point as it seems the market is fairly well supported below. Ultimately, this is more of a short-term trader’s type of situation.
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