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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/8gGfGuw87o
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/VFxFMFWJ5L
Euro Weakness Forces SNB to Resume Forex Intervention

Euro Weakness Forces SNB to Resume Forex Intervention

2013-04-05 08:11:00
Benjamin Spier, Technical Strategist
Share:

THE TAKEAWAY: SNB foreign currency reserves jump by the largest amount in six months -> SNB may be resuming Forex intervention following Euro weakness -> Franc declines slightly

The Swiss National Bank seems to have resumed intervening in EUR/CHF trading, as the SNB raised its foreign currency reserves by the largest amount in six months. Foreign currency reserves were reported at 438.3 billion Francs in March, beating expectations for 427.0 billion and up from a revised 430 billion in February.

The SNB’s foreign currency reserve level seemed to stall below 430 billion Francs in October 2012, as a rally in Euro trading eased the pressure on the SNB to maintain the 1.20 floor in EUR/CHF trading. However, the recent selloff in Euro on weakening economic data has driven the pair back to within 150 points of the level reinforced by the central bank, and may be forcing the SNB to restart its foreign currency purchases.

SNB President Jordan said in February that he thought the bank won’t have to continue buying foreign currencies, as the Franc will naturally continue to depreciate with the Euro-zone recovery. However, signs of the recovery are stalling, and Euro sellers are looking for safe haven currencies like the Franc, thereby bringing the SNB back to the Forex table.

The 1.20 floor in EUR/CHF has been maintained since September of 2011, when the SNB said it will buy the Euro using an unlimited supply of the Swiss Franc. The SNB spent 188 billion Francs in 2012 to enforce the cap on its currency, the equivalent of nearly a third of the Swiss GDP, and the currency pledge was reiterated by the central bank in its March meeting.

The Euro rose towards 1.2170 against the Franc following the announcement. Resistance might next be provided at 1.2180, by the 76.4% retracement of the rally from the February low to the March high. Support could be provided at 1.2128, by the 200 day moving average.

EURCHFDaily: April 05, 2013

Euro_Weakness_Forces_SNB_to_Resume_Forex_Intervention_body_eurchf.png, Euro Weakness Forces SNB to Resume Forex Intervention

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES

News & Analysis at your fingertips.