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EUR/USD Breaks Support, Risk of SNB Currency Intervention - US Market Open

EUR/USD Breaks Support, Risk of SNB Currency Intervention - US Market Open

Justin McQueen, Strategist

MARKET DEVELOPMENT –EUR/USD Breaks Support, Risk of SNB Currency Intervention

Oil: Retaliation from Iran saw two US military bases in Iraq come under attack. Consequently, oil prices, alongside safe-havens had benefitted, before reversing their initial gains as President Trump had been quick to respond with optimism, having stated that “all is well” (Full Analysis). Looking ahead, eyes are firmly placed on the response from the US with President Trump scheduled to provide a speech later today.

EUR: Modest losses for EUR/USD as sharp misses on German factory orders weighed on the pair, which in turn broke below support at 1.1140. Alongside this, better than expected ADP jobs data added to the Euro’s woes and as such, eyes now turn towards support at 1.1050-60.

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CHF: A new 52-week low for EUR/CHF having broken below the 1.0800. Surprisingly, the pair remains relatively soft despite the recent rebound in equity markets. That said, EUR/CHF is back down towards the level at which the SNB had been active in stemming further declines in the cross, as such, further losses may be somewhat limited in the short term.

SNB Intervention

Source: DailyFX, Refinitiv

Source: DailyFX, Refinitiv

Economic Calendar (08/01/20)

Source: DailyFX,

WHAT’S DRIVING MARKETS TODAY

  1. Gold Price (XAU/USD) Surge as Iran Attacks US Bases in Iraq” by Nick Cawley, Market Analyst
  2. FTSE 100 Technical Outlook – Backing Off from Resistance in Bullish Manner” by Paul Robinson, Currency Strategist
  3. Crude Oil Price Analysis: Iran Strikes Back, What Next from President Trump?” by Justin McQueen, Market Analyst

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

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