The North American trading session activity has been rather light so far as the lack of US data releases and the end to a busy week is keeping a lot of the usual liquidity at bay. The one nugget of information that was released wasn’t all that encouraging for the US housing market though as New Home Sales failed to live up to expectations of 470k with a 467k print. “That’s not that bad” is what you may be thinking to yourself on the tiny 3k miss, but the bad news came in the form of the previous data which was revised from 504k down to 466k. Strangely enough, the negative reaction has been tepid perhaps due to the fact that it not “dumpster fire bad” like this figure was back in July and August when 406k and 412k were reported respectively.
Being that we are approaching the end of the week and a lack of interest in picking a side for the USD, perhaps we could look at something that is not US-centric; the EUR/CHF. By now everyone should be intimately familiar with the Swiss National Bank’s floor of 1.20 on this pair and the habit it has of rallying strongly whenever it approaches the floor. Well, that situation has arisen once again as the EUR/CHF has gotten within 60 pips of the demarcation line.
While the potential rally on this pair may be minimal, as evidenced since the floor was set back in September 2011, traders who are willing to be patient might be able to benefit if the SNB steps in to drive it further away from the floor.
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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