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.

Free Trading Guides
EUR/USD
Mixed
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
GBP/USD
Bearish
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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
  • What is the best time to trade #forex? Find out: https://t.co/M9R46rmPUK #tradingstyle https://t.co/k6z9p9v4nY
  • The bear flag pattern is a popular price pattern used by technical traders within the financial markets to determine trend continuations. How can you trade a bearish flag pattern? Find out here: https://t.co/HfXdjTWdEi @WVenketas https://t.co/qV7J1mhGBi
  • Macro data from around the world have long attested to the urgent need for a trade settlement between the US and China. Increasingly the corporate numbers are saying the same. Get your market update from @DavidCottleFX here:https://t.co/Qon7QUO80c https://t.co/L1it36hFzw
  • RT @TaviCosta: The labor market has started to crack. ADP report leads annual change in unemployment rate with a 0.9 correlation. Equity…
Swiss Franc May Turn Volatile Against Euro as SNB Announces Monetary Policy

Swiss Franc May Turn Volatile Against Euro as SNB Announces Monetary Policy

2010-03-11 05:55:00
Ilya Spivak, Sr. Currency Strategist
Share:

Key Overnight Developments

• Australian Unemployment Rate Rises, Jobs Gain Misses Estimates
• Japan’s GDP Report Shows Deflation Rate Doubled in Fourth Quarter



Critical Levels

euro open 03112010 1

The Euro corrected lower in overnight trade, giving up 0.1 percent to the US Dollar. The British Pound was little changed as prices consolidated in a choppy 60-pip range below 1.50 to the greenback. We remain short EURUSD at 1.4881 and GBPUSD at 1.5765.


Asia Session Highlights


euro open 03112010 2

Australia’s Unemployment Rate rose to 5.3 percent in February from a revised 5.2 percent in the previous month as the economy added a meager 400 jobs amid expectations of a 15,000 increase. The details of the report revealed a gain of 11,400 full-time jobs coupled with a nearly-equivalent declined in part-time employment, essentially implying that about eleven thousand workers transitioned to longer work shifts. Indeed, a measure of hours worked surged 2.4 percent, the most in over two decades. On balance, this is not as terrible of an outcome as the headline figures would suggest. Indeed, a move to full-time hours implies workers’ take-home pay will increase, which should help encourage spending and bode well for consumption and by extension for overall economic growth. Still, the outcome marked the smallest cumulative increase in employment in six months and the first increase in the jobless rate since September of last year. This coupled with news China’s Consumer Price Index added 2.7 percent in February, putting inflation at a 16-month high and implying Beijing may step up efforts to slow the buoyant Asian economy before it overheats, could hint at the emergence of significant headwinds for the Australian economy in the months ahead. China is Australia’s largest export partner and a key driver of the mining boom that has helped support the antipodean nation’s relative resilience amid the global economic downturn of the past two years.

Japan’s Gross Domestic Product figures were revised downward, revealing the economy expanded 0.9 percent in the fourth quarter versus the 1.1 percent gain reported in early estimates. The annualized growth rate was slashed to 3.8 percent from the significantly higher 4.6 percent preliminary figure. The outcome owed to a smaller-than-expected increase in capital investment and government spending. Exports remained the primary driver of expansion, accounting for 0.7 percent of the overall increase. Perhaps most disturbingly, the GDP Deflator fell 0.8 percent, revealing that prices fell at twice the rate of the previous quarter and seemingly assuring that the Bank of Japan will stick with its “extremely accommodative” posture and may even loosen monetary conditions further. This suggests the cost of borrowing in Japan will continue to decline after the interest rate on three-month Yen loans fell below that of comparable ones denominated in US Dollars for the first since August last week. This bodes ill for the Japanese currency as investors shift FX carry trade portfolios away from short-USD exposure and toward a short-JPY bias.

Related Articles: New Zealand Dollar Tumbles after RBNZ Commentary Leans Towards Measured Tightening


Euro Session: What to Expect

euro open 03112010 3

The interest rate decision from the Swiss National Bank headlines the economic calendar in European hours. While a rate hike is surely out of the question, the markets will be keen to see if SNB chief Philipp Hildebrand and company will further relax their posture on currency market intervention to depress the value of the Swiss Franc – a policy put in place to combat deflation. At the previous meeting, the central bank changed their wording to say they will act to “prevent any excessive appreciation of the Swiss Franc against the Euro,” as opposed to preventing “any appreciation” as noted in previous statements. Any revisions to the bank’s growth and inflation estimates may also prove significant: exports account for over half of the mountain nation’s economy and most of its trading partners are Euro Zone member states, meaning that economic recovery in Switzerland is highly dependent on a rebound in the currency bloc. The region is off to a bumpy start in 2010 after GDP growth slowed in the fourth quarter while a sovereign debt crisis emerged in southern Europe and investors will be interested to see how the SNB sees this playing out for their own economy.


For real time news and analysis, please visit http://forexstream.dailyfx.com

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.