Tag Archives: EUR/CHF
FX Daily Strategist: Europe
– EUR rally to take breather ahead of key events on Wednesday and Thursday Asian shares are broadly lower up to 1% lower, the losses are spread across sectors, suggesting this may be broad riskreduction ahead of key events rather than any specific catalyst.
FX Technical Volume Strategy: EUR/CHF buying holds ground
– Overall volumes are stabilising at higher levels as investors reposition themselves after the holiday period. – After several weeks of declining volume, the recent large increase in EUR/CHF volume endorses the upside breakout.
FX Daily Strategist: Europe
– EURUSD hits 1.28 target. We lock in profit but maintain long EURJPY and EURCHF The combination of rising expectations for QE and the “europhoria” post-ECB pushed EURUSD above 1.2800. Given that we hit our target, we took profit on our long EURUSD recommendation and booked a 3.92% profit.
FX Daily Strategist: US
– Draghi delivers, EURUSD to continue its march towards 1.2800 It is clear from the market reaction following the ECB meeting yesterday that the outcome has presently surprised, even though . Stocks are continuing to trade higher (financials still outperforming), Spanish 10Y bonds have continued to rally (30bps following from 40bps yesterday).
Draghi confirms ECB will conditionally buy bonds
Market largely got what it expected with the Draghi press conference today – but market limbo may continue after today’s response to the ECB news as biggest event risks don’t arrive until next week.
ECB unveils plans – squeezing Eur shorts again, even against CHF
The Euro squeezed higher as ECB officials communicated the ECB’s plans to buy peripheral debt. But is this as positive for the Euro as the market is trying to tell us at first blush?
FX Daily Strategist: Europe
* EUR Short covering remains the big driver The big driver in FX continues to be short covering of EUR positions on anticipation of a strong ECB response to lower sovereign debt yields; yesterday’s news that ECB Draghi won’t be attending the Jackson Hole conference on account of a busy schedule play to this.
FX Monthly: Who’s afraid of the big, bad cliff?
We expect USD strength to persist into year-end, aided by relative economic outperformance and the sbsence of QE3. Our base case of a compromise on the impending fiscal cliff is consistent with limited Fed easing.
Daily FX Technical Strategy – One down, more to follow?
As yields in Italy and Spain start to rise sharply the spotlight appears to be shifting onto classical “risk” indicators. Yesterday NZD/USD completed a Head and Shoulders top and over the rest of the week we are watching to see whether other indicators like the AUD/USD and S&P500 follow the NZD’s lead.
Global Technical Watch – Quick Charts
The initial bearish signs, such as the Reversal Day in AUD/JPY we noted earlier this week, are snowballing. Further JPY gains are likely across the board, especially as US 10y yields threaten trendline resistance near 1.36%.
Daily FX Technical Strategy: A shot across the bows
The move in Spanish yields yesterday was a shot across the bows for Risk. While the prospect of contagion within the eurozone has risen with 10y Italian yields gapping higher out of range, yields outside Spain have not yet reached levels where the rise becomes self sustaining.
Daily FX Technical Strategy: Momentum points to higher dollar
Growth concerns dominated trading overnight. Low and falling US yields made no impact on the dollar which rose even against recently strong currencies like the AUD and KRW.