Euro Trades in 300 Point Range vs. US Dollar as Liquidity Returns, Swiss Franc Gains as Safe Haven of Choice
The euro spent the majority of last week consolidating versus the US dollar between 1.3915 and 1.4125, but the pair’s break higher on Sunday coincided with a surge in volatility. Indeed, EUR/USD traded within a more than 300 point range after rallying to 1.4365 and reversing to break below 1.40 at the end of the day. On the other hand, the Swiss franc gained across the majors on safe-haven flows amidst escalating conflicts in the Middle East. The euro and Swissie did have one thing in common today: they both reached fresh record highs against the British pound. While retracements may be due for EUR/GBP and GBP/CHF on Tuesday, the trend remains clear for the pairs. There will be little in the way of event risk for the euro and Swiss franc through the end of the week. Tomorrow, the Purchasing Managers’ Index results for the Euro-zone’s retail sector are anticipated to reflect the worst conditions on record while the UBS Swiss Consumption Indicator could slump to a three-year low. Nevertheless, netiher of these releases tend to be market-moving, making technical analysis far more useful this week.
Related Article: Euro/US Dollar Exchange Rate Forecast, US Dollar/Swiss Franc Long-Term Exchange Rate Technical Forecast
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