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
GBP/USD
Mixed
USD/JPY
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
Gold
Bearish
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
Bearish
More View more
Real Time News
  • Germany 30 IG Client Sentiment: Our data shows traders are now net-long Germany 30 for the first time since Feb 03, 2020 when Germany 30 traded near 12,999.10. A contrarian view of crowd sentiment points to Germany 30 weakness. https://www.dailyfx.com/sentiment https://t.co/kuP6G13JFT
  • France 40 IG Client Sentiment: Our data shows traders are now net-long France 40 for the first time since Oct 03, 2019 when France 40 traded near 5,464.40. A contrarian view of crowd sentiment points to France 40 weakness. https://www.dailyfx.com/sentiment https://t.co/WGVZYX1IKX
  • Current US Treasury Yield Curve inversion https://t.co/UMfyVhuk4a
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: 1.81% Silver: 1.23% Oil - US Crude: -3.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/qhKj0AqwkV
  • RT @LiveSquawk: WHO’s Tedros: Increase In #Coronavirus Cases Outside China Is ‘Concerning’ - Virus Has Pandemic Potential, But Is Not A Pa…
  • White House preparing to request emergency spending package from congress to finance Coronavirus response, according to Washington Post
  • $GBPUSD is under modest pressure this morning and looks to make a test for the 1.2900 handle. Get your GBP/USD market update from @JMcQueenFX here: https://t.co/8Ryx7yVmbr https://t.co/TKlBFO3dHm
  • Gold Gap-and-Go Breakout: XAU Fresh Highs as Coronavirus Fear Spreads https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/02/24/Gold-Price-Gap-and-Go-Breakout-XAU-GLD-JS-Fresh-Highs-as-Coronavirus-Fear-Spreads.html $Gold https://t.co/rwoCoxquXk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.76%, while traders in USD/CAD are at opposite extremes with 70.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xfbR5Xuzhq
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 1.97% Silver: 1.31% Oil - US Crude: -4.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/iEJ8t7CHAM
Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar

Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar

2011-09-06 14:31:00
Michael Boutros, Technical Strategist
Share:

Daily Winners and Losers

_Swiss_Franc_Plunge_on_SNB_Intervention_to_Bode_Well_for_US_Dollar_body_Picture_2.png,  Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar_Swiss_Franc_Plunge_on_SNB_Intervention_to_Bode_Well_for_US_Dollar_body_Picture_3.png,  Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar_Swiss_Franc_Plunge_on_SNB_Intervention_to_Bode_Well_for_US_Dollar_body_Picture_4.png,  Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar

The greenback was stronger across the board at the open of North American trade, with the Australian dollar suffering the least with a loss of just 0.18%. Although risk appetite remains on the defensive after an unprecedented move by the Swiss National Bank, the aussie remained supported after the Reserve Bank of Australia left interest rates unchanged at 4.75% citing unstable financial markets and weaker growth prospects both domestically and globally. The central banks was less dovish then expected however with Governor Glenn Stevens noting that, “investment in the resources sector is picking up very strongly and some related service sectors are enjoying better-than-average conditions.” The governor went on to cite concerns about the, “medium-term outlook for inflation,” stating that the, “key questions will be the extent to which softer global and domestic growth will work, in due course, to contain inflation,”

The aussie surged on a release, with the AUD/USD pair testing interim resistance at the 1.06-handle before easing back to 1.0520 an hour into US trade. Interim support rests here with subsequent floors eyed at the 23.6% Fibonacci extension taken from the July 27th and September 1st crests at 1.0492, 1.0430, and the 38.2% extension at 1.0325. Despite the high-yielders resilience today amid a continued risk sell-off, it’s likely the aussie will remain under pressure as investors remain reluctant to take on risk. Topside resistance holds at the figure, backed by 1.0680, 1.0720, and 1.0760. Overnight traders will be lending a keen ear to remarks made by RBA Governor Glenn Stevens on the assessment of the domestic economy, with GDP data following soon after. Consensus estimates call for 2Q GDP to print at 1.0% q/q, up from a previous contraction of 1.2%, with the year on year figure expected to ease to 0.6% from a previous read of 1.0% y/y.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

1.0637

20-Day SMA

1.0505

10-Day SMA

1.0597

2011 AUD High

1.1079

Upcoming Events

Date

GMT

Release

Expected

Previous

9/6

23:30

RBA Governor Glenn Stevens Speaks on Australian Economy

-

-

9/6

23:30

AiG Performance of Construction Index (AUG)

-

36.1

9/7

1:30

Gross Domestic Product (QoQ) (2Q)

1.0%

-1.2%

9/7

1:30

Gross Domestic Product (YoY) (2Q)

0.6%

1.0%

_Swiss_Franc_Plunge_on_SNB_Intervention_to_Bode_Well_for_US_Dollar_body_Picture_5.png,  Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar_Swiss_Franc_Plunge_on_SNB_Intervention_to_Bode_Well_for_US_Dollar_body_Picture_6.png,  Swiss Franc Plunge on SNB Intervention to Bode Well for US Dollar

The franc plummeted in pre-market trade, sliding a staggering 8.03% against a stronger greenback. Overnight the Swiss National Bank set a minimum exchange rate for the EUR/CHF at 1.20 citing that the “current massive overvaluation of the Swiss franc poses an acute threat to the Swiss and carries the risk of a deflationary development”. The central bank pledged to “buy foreign currencies in unlimited amounts” to defend the targeted exchange rate with the “utmost determination.” The franc tumbled against across the board, highlighted by declines against the dollar and a 8.41% decline against the high-yielding aussie. The move represents an act of desperation from the SNB and bodes well for the greenback as renewed concerns about the European debt crisis will now see haven flows diverted back into the dollar.

The USD/CHF pair soared more than 600pips before encountering some headwinds ahead of the 76.4% Fibonacci extension taken from the August 9th and September 2nd troughs at the 0.86-figure. Interim resistance holds here with subsequent ceilings eyed at 0.8670 and the 0.87-handle. Interim support holds at the 0.85-figure backed closely by the 61.8% extension at 0.8430 and 0.8290.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

0.8022

20-Day SMA

0.7930

10-Day SMA

0.8064

2011 CHF High

0.7124

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report or receive his daily reports, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter@MBForex.

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

DISCLOSURES

News & Analysis at your fingertips.