EURUSD, USDCHF and Kiwi Crosses Offer More Traction than SPX and Risk Trends
• ECB and SNB Presidents offer dovish views, the former on QE and the latter with a more unpredictable strategy
• Kiwi crosses offer consistent technical patterns that may provide movement drive without strong fundamentals
The market's are on the move, but the most flashy setups may not provide the best opportunities. Continuing to build a speculative presence, the S&P 500 is now just off record highs. However, the fundamental backing for the move lacks depth. Meanwhile, a significant upgrade in Fed expectations and general fundamentals doesn't seem to be moving the USDollar Index any closer to the 12-year highs above - much less through them. Perhaps the round of Fed speakers (anchored by Chairwoman Janet Yellen) tomorrow can change this one way or the other. In the meantime, the Euro and Swiss Franc have caught a stronger fundamental wind after the presidents for the ECB and SNB offered dovish sentiments at their respective speeches. EURUSD offers a convincing medium-term fundamental, but it may not match USDCHF for scale. In the meantime, the New Zealand Dollar has staged similar technical patterns across a number of its pairs. I have trades in AUDNZD and NZDUSD, so adding will require serious conviction. We look at the stalwarts and the true market movers in today's Trading Videos.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.