Swing Trades: EUR/CHF, GBP/USD, EUR/USD

Dukascopy Bank Team Dukascopy Bank SA

EUR/CHF: SNB Interest Rate Decision

The EUR/CHF currency rose by 26 base points or 0.23% to continue the trading session nearing the 1.1480 area, after the Swiss National Bank announced its interest rate decision. The weakening against the Euro was a positive sign for the Central Bank, indicating that the Franc slightly diminished its over-valuation.

The Swiss National Bank reported that its key interest rate remained unchanged at -0.75%, and, in the meantime, softened its stance concerning the Franc’s strong performance. However, the SNB is likely to continue focusing on the EU, as it will be seeking the European Central Bank to take action of removing some of the monetary stimulus before considering any changes in its own policy.

GBP/USD: BoE Official Bank Rate

The Sterling managed to offset all Wednesday’s losses after the Bank of England announced its decision to leave interest rates unchanged. Following the report, the GBP/USD jumped 118 base points or 0.89% to reach the yearly high and continue consolidation in the 1.3394 area given additional boost from the BoE governor’s comments.

Apart from keeping the key interest rate at 0.25%, the Bank of England warned about higher possibility of changing rates policy in coming months for the first time in ten years. The main concerns remained surrounding weaker wage growth, slower overall expansion and uncertainty about Brexit impact on the UK economy. Though, the Central Bank expected the yearly growth to pick up more than estimated.

EUR/USD: US Consumer Price Index

The EUR/USD dropped initially after the US consumer inflation reports showed better-than-expected figures. The Euro depreciated against the US Dollar by 0.39% or 46 base points to the 1.1849 mark, though the European single currency managed to return to pre-data levels.

According to the Labour Department's report, the consumer inflation in the US showed a monthly rise of 0.4% in the month of August, with an annual gain of 1.7% in the same period. An increase in the CPI figures boosted expectations for the Fed rate hike in December, which supported bullish sentiment in EUR/USD additionally fuelled by the NK latest missile launch. The next direction of the pair will be determined by Friday’s US retail sales data.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.