Central bankers in the surrounding euro area loosen policy further

Good morning from Hamburg and welcome to our latest Daily FX Report. U.S. Intel Corp gave a current-quarter revenue forecast above expectations and said the supply chain was in good shape ahead of holiday season as demand for personal computers recovered.nA global slump in personal computer demand that began with Apple Inc's launch of the iPad four years ago has stabilized in recent months, in part due to companies replacing employees' older laptops. Intel said in a statement on Tuesday that demand for its chips was in good shape.

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Market Review – Fundamental Perspective

The Swiss National Bank is about keep its policy for the franc in place until at least 2016 as central bankers in the surrounding euro area loosen policy further. The Swiss central bank set the cap three years ago to ward off deflation after investor concern pushed the franc nearly to parity with the euro. The European Central Bank ́s introduction of a negative deposit rate and announcement of plans to buy asset-backed securities has lifted the franc against the euro in recent months, intensifying speculation that the SNB could again wage currency interventions or enact its own deposit charge. Such an easing of policy within the euro area could send the franc up further versus the euro. It has already climbed 1.6 percent against the common currency so far this year. SNB policy makers have stressed repeatedly they stand ready to take further measures – including negative interest rate – should they beome necessary. The central bank hasn’t intervented in currency markets to defend the cap since 2012. More investors are seeking the dollar as a haven while the global economy shows signs of faltering, causing Fed officials to express concern that its strength will also curb growth in U.S. it has climbed against 29 of its 31 most traded peers this year as the Fed reins in its monetary stimulus measures and the European Central Bank and Bank of Japan talk about expanding their money supplies. The International Monetary Fund sees the U.S. economy expanding 3.1 percent in 2015, versus 1.3 percent in the euro area and 0.8 percent in Japan. The case for further dollar gains may wane if traders continue to see less of a chance the Fed will boost interest rates next year from zero to 0.25 percent range they have been in since 2008. The Bloomberg Dollar Spot Index, which measures the U.S. currency against 10 global currencies, fell 0.8 percent last week, the biggest fall since April.

Daily Technical Analysis

XAU/USD (Daily)

Looking long-term Gold has experienced a high volatility and the price moved to a low at $1182 now. The support line at 1182.44 could rebound the price and stop the downward movement.The CCI is showing that the the pair is highly overbought and a movement to the Center line is likely. The price wasn’t able to break through the highest Fibonacci resistance level (61.8). We have to see how the USD is developing as Gold depends highly on it.

Support & Resistance (Daily)