- USD/CHF will now depend on the outcome of the ECB.
- Dollar is higher on the day despite last week's NFP disappointment.
USD/CHF has been on the front foot at the start of the week, extending last week's bid within the ascending channel formed mid-August. The pair currently trades at 0.9902 having ranged between 0.9870 and 0.9915, up +0.31% on the day so far.
The Swiss franc is in focus this week as markets look to the European Central Bank meeting and ponder as to what the next move from the Swiss National Bank will be. The SNB will be seeking to maintain the EUR/CHF cross at competitive levels for its export market to European nations - Indeed, there have already been signs that the SNB has recently intervened in the FX market have distorted demand for the CHF - CHF net shorts pulled back a little ground having dropped heavily the previous week on increased demand for safe-haven assets.
Dollar remains robust despite NFPs disappointment
As to the Dollar, bulls displayed a strong start to last week, with a break through 99 the figure, although ran into supply at the midpoint of the handle. In the lead into the highly anticipated Nonfarm Payrolls, the Dollar was a figure lower down at 98.50 but tested the bull's commitments on the disappointments in the report. The 98 handle has so far proven resilient and today the Dollar is higher by 0.20% so far having ranged between 98.14 and 98.51.
ECB will take the spotlight
"if the ECB is really serious about closing the gap between inflation expectations and its own target, anything else but a big package can be the outcome of Thursday’s meeting," analysts at ING Bank argued.
"The costs of waiting or only delivering parts of a big package and then trying to get ahead of the curve at a later stage will be higher - an experience eurozone policymakers have had quite a few times during the last ten years. This might be his last stunt but we expect Mario Draghi to conquer the barricades once again and put on his Super Mario costume one last time on Thursday."
USD/CHF has climbed from the depths of the 97 handle to the 0.99 handle in a steep accenting channel and is en route to the 200-day moving average at 0.9950. Bulls will be now looking to base above the late March lows just below 0.99 the figure.
|Today last price||0.9905|
|Today Daily Change||0.0030|
|Today Daily Change %||0.30|
|Today daily open||0.9875|
|Previous Daily High||0.9918|
|Previous Daily Low||0.9853|
|Previous Weekly High||0.993|
|Previous Weekly Low||0.9797|
|Previous Monthly High||0.9976|
|Previous Monthly Low||0.9659|
|Daily Fibonacci 38.2%||0.9893|
|Daily Fibonacci 61.8%||0.9878|
|Daily Pivot Point S1||0.9846|
|Daily Pivot Point S2||0.9817|
|Daily Pivot Point S3||0.9781|
|Daily Pivot Point R1||0.9911|
|Daily Pivot Point R2||0.9947|
|Daily Pivot Point R3||0.9976|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.