A softer Swissie

There is a sense that FX markets are coasting into year end, with one or two exceptions. The Aussie we talked about yesterday, with reference to its ability to defy gravity in the face of the greater nervousness surrounding China. But the Swissie is also worth noting as we move into quarter end. We’ve seen around a 0.7% reversal in EURCHF from the lows seen in the middle of March around the 1.2120 area, now nudging above 1.22. Naturally, some of the uncertainties surrounding the Ukraine and less so China have had an impact, but the SNB’s continued pledge to defend the 1.20 level, repeated by the SNB President a week ago, have served to make the yen the preferred safe haven during the second half of March.

For today, the final reading on US Q4 GDP and UK retail sales will be the main distractions, together with the usual weekly claims data in the US. The dollar is receiving a modest bid at the start of the European session, mostly at the expense of the euro and the yen. Banks try their best to anticipate the effect of month end flows on currency movements as asset managers adjust hedges to compensate for monthly asset market performance. There has been some talk that this will be positive for the yen going into month end, with the euro weaker on the back of the strong performance of a strong performance from Eurozone bonds. Overall though, the message is beware of greater volatility Friday and Monday.

Share: Analysis feed

FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.