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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
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
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • A tidal wave of cash waits to return to virus-battered assets, backstopped by huge stimulus. It is unlikely to deploy until infection slows, whatever the US administration prefers. Get your market update from @DavidCottleFX here: https://t.co/OWOi2HxejD https://t.co/oSaImLHSv5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.69%, while traders in US 500 are at opposite extremes with 72.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/F662hrVIJs
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.01% 🇪🇺EUR: -0.05% 🇳🇿NZD: -0.11% 🇯🇵JPY: -0.23% 🇨🇦CAD: -0.25% 🇬🇧GBP: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Eap93N4RvZ
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: -1.82% Wall Street: -1.83% Germany 30: -2.34% France 40: -2.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/g3El2CLFLt
  • My trading video for today: 'Dow Ends Worst Quarter Since 1987, Oil a Record and Trump Talks Infrastructure' https://www.dailyfx.com/forex/video/daily_news_report/2020/04/01/Dow-Ends-Worst-Quarter-Since-1987-Oil-a-Record-and-Trump-Talks-Infrastructure.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/5Gp7y2QwCB
  • Forex Update: USD gains against its major counterparts, with GBP (-0.31%) and CAD (-0.31%) showing the biggest losses. https://t.co/tsmFUrcLAQ
  • Wall Street Futures [delayed]: Dow Jones (-1.37%) S&P 500 (-1.40%) Nasdaq (-0.98%) -BBG
  • The $USD is on the defensive after the Fed activated open-ended QE to becalm panicky financial markets, but scope for renewed stress means losses may be limited. Get your market update from @IlyaSpivak here:https://t.co/dX4Y2akuLc https://t.co/HTn5MtkpFO
  • (Sentiment Weekly) The #DowJones, #SP500 and #DAX30 have bounced after aggressive declines. Can this momentum last? Trader positioning seems to be offering mixed signals as technicals point bearish - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/01/Dow-Jones-SP-500-DAX-30-Outlook-Will-the-Bounce-Last.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/qpCql2i9M8
USD/CHF Little Changed as SNB Opts For Status Quo, Brexit in Focus

USD/CHF Little Changed as SNB Opts For Status Quo, Brexit in Focus

2016-06-16 07:44:00
Oded Shimoni, Junior Currency Analyst
Share:

Talking Points:

- The Swiss Franc was little changed versus its major currency counterparts

- SNB keeps Deposit Rate unchanged at -0.75%, 3-Month Libor Target Range at -1.25% to -0.25%

- "Brexit" may cause uncertainty and turbulence to increase in the global economy

Learn good trading habits with DailyFX’s “Traits of successful traders” series

The Swiss Franc was little changed versus other majors (at the time this report was written) after today’s SNB rate decision saw interest rates unchanged at record low negative -0.75% on sight deposits, as was expected by economists. The SNB also kept the 3-Month Libor Target Range unchanged at -1.25% to -0.25%, also as expected.

Looking into the press release, the SNB commented that the bank will remain active in the foreign exchange market as necessary. The bank emphasized explicitly that the negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive. The bank commented again that the Swiss franc is still significantly overvalued. The SNB also said that the imminent UK referendum may cause uncertainty and turbulence to increase in the global economy.

In their latest policy meeting, the ECB signaled that they are in “implementation mode” of the Stimulus measures announced in March. The fact that the ECB are seemingly holding back on further stimulus for the moment might have reduced pressure on the SNB to further cut rates, as Franc strength versus the Euro could potentially burden on the Swiss economy due to the trading relations between Switzerland and the Euro-Zone.

With that said, there might potentially be another issue at play here. As was mentioned yesterday by Fed Chair Yellen, “Brexit” was a consideration for the Fed in their decision to keep rates unchanged. It seems likely to assume that the same goes for the SNB, as a “Brexit” scenario could potentially see higher demand for the Swiss Franc on a “safe haven” type of scenario.

Taking both these factors into consideration, it was expected that the SNB will opt to keep policy at status quo for the moment, until/if events dictate otherwise. With the decision widely expected, the Swiss Franc was little changed versus other majors.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 65.9% of traders are long the USD/CHF at the time of writing. The SSI is a contrarian indicator, implying further weakness ahead for the pair.

You can find more info about the DailyFX SSI indicator here

USD/CHF 5-Minute Chart: June15, 2016

USD/CHF Little Changed as SNB Opts For Status Quo, Brexit in Focus

--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com

To contact Oded Shimoni, e-mail oshimoni@DailyFX.com

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

DISCLOSURES

News & Analysis at your fingertips.