News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Heads Up:🇩🇪 Inflation Rate MoM Prel (FEB) due at 13:00 GMT (15min) Expected: 0.5% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇩🇪 Inflation Rate YoY Prel (FEB) due at 13:00 GMT (15min) Expected: 1.2% Previous: 1% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Kazakhstan increased oil production in Feb by 8% m/m, exceeding OPEC+ quota #OOTT
  • 🇲🇽 Business Confidence (FEB) Actual: 43.9 Previous: 43.2 https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇮🇳 Balance of Trade Prel (FEB) due at 12:20 GMT (15min) Previous: $-14.54B https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇲🇽 Business Confidence (FEB) Actual: 43.9 Previous: 43.2 https://www.dailyfx.com/economic-calendar#2021-03-01
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.33%, while traders in France 40 are at opposite extremes with 72.64%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tZ43SxmQHl
  • Heads Up:🇲🇽 Business Confidence (FEB) due at 12:00 GMT (15min) Previous: 43.1 https://www.dailyfx.com/economic-calendar#2021-03-01
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.26% Silver: 0.57% Gold: 0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vWoEaO1tOP
  • GBP/USD IG Client Sentiment: Our data shows traders are now net-long GBP/USD for the first time since Feb 04, 2021 when GBP/USD traded near 1.37. A contrarian view of crowd sentiment points to GBP/USD weakness. https://www.dailyfx.com/sentiment https://t.co/jtOCQMnYAn
Implications for EUR/USD, EUR/GBP after SNB Floor Collapses

Implications for EUR/USD, EUR/GBP after SNB Floor Collapses

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EURCHF falls as much as 28% after SNB removes floor.

- Consequences for EURUSD thanks to ECB? Many, indeed.

- See the DailyFX Economic Calendar for Thursday, January 15, 2015.

The Swiss National Bank's decision to remove the EURCHF Sf1.2000 floor is a monumental development for FX markets. Sparing no few words, nothing more needs to be said than the fact that this is a complete surprise for most (if not all) market participants.

With the SNB's balance sheet having exploded to 100% of the country's annual GDP, the cost of maintaining the floor was too costly for the SNB. The first signs that the SNB was struggling with the floor came on December 18, when the SNB first introduced negative interest rates as a way to deter speculators from betting on further Franc appreciation.

At the time we said that the move was in all likelihood preemptive action to front run a massive balance sheet expansion by the ECB; this may be the surest sign yet that the ECB is on the verge of unveiling some massive QE program at its meeting next week.

As it were, we had no exposure to CHF at the time of the floor removal; and while we're excited by the opportunity now to trade the CHF freely from the EUR (the rolling 20- and 100-day correlations in EURUSD and USDCHF were -0.98 and -0.99, respectively, before today), the Swiss Franc is not a clean floating exchange rate right now - it's best to steer clear for a few days as volatility remains high.

See the above video for technical considerations in EURUSD and EURGBP.

Read more: Momentum Gathering Pace in EUR-crosses - Watch EUR/USD 5-EMA

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES