14 Oct 2013
USD/CHF well capped by 0.9130
FXstreet.com (Athens) – The USD/CHF is moving slightly downwards today – generally under pressure – as the US debt default impasse is lingering.
USD/CHF can’t beat the June low as of 1.9130 amidst the persisting political gridlock in the US
The USD/CHF opened lower at the kick off of the Asian trading session on Sunday, due mostly to the fact that the persisting political gridlock in the US brought back the demand for the “Swissie” safe haven appeal. What’s more, the political stance of the policy makers attending the IMF/World Bank annual conference last weekend was at least cautious. As the big Thursday “debt -ceiling” deadlock day is looming, the US fiscal issues “jitters” will by far heat up; thus the demand for safe-haven currencies like “Swissie” should not catch traders off guard. Elsewhere, oday ECB’s Noyer through “Le Figaro newspaper” mentioned that a US debt “accident” could have violent results in the global growth. Furthermore, the Swiss Producer Price index released earlier, showed some – out of the blue - inflationary pressures in the country, a positive sign that boosted the cross. Last but not least, SNB’s Jordan said that “said minimum exchange rate is crucial tool of monetary policy,” as well as “EURCHF cap of 1.20 is to avoid a tightening of monetary conditions in Switzerland.”
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that “ Last week the USD/CHF bounced off the .9130/54 resistance area, made up of the June low and the 38.2% Fibonacci retracement of the September-to-October decline. While it caps, a slip back towards the .9040 area should be seen ahead of the .9016 October 9 low. While capped by .9130/54, we remain unable to rule out further losses to the .8931/09 zone, the 2012 low and the base of a one year down channel. We would look for this to hold the downside and provoke a reversal higher,though.”
USD/CHF can’t beat the June low as of 1.9130 amidst the persisting political gridlock in the US
The USD/CHF opened lower at the kick off of the Asian trading session on Sunday, due mostly to the fact that the persisting political gridlock in the US brought back the demand for the “Swissie” safe haven appeal. What’s more, the political stance of the policy makers attending the IMF/World Bank annual conference last weekend was at least cautious. As the big Thursday “debt -ceiling” deadlock day is looming, the US fiscal issues “jitters” will by far heat up; thus the demand for safe-haven currencies like “Swissie” should not catch traders off guard. Elsewhere, oday ECB’s Noyer through “Le Figaro newspaper” mentioned that a US debt “accident” could have violent results in the global growth. Furthermore, the Swiss Producer Price index released earlier, showed some – out of the blue - inflationary pressures in the country, a positive sign that boosted the cross. Last but not least, SNB’s Jordan said that “said minimum exchange rate is crucial tool of monetary policy,” as well as “EURCHF cap of 1.20 is to avoid a tightening of monetary conditions in Switzerland.”
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that “ Last week the USD/CHF bounced off the .9130/54 resistance area, made up of the June low and the 38.2% Fibonacci retracement of the September-to-October decline. While it caps, a slip back towards the .9040 area should be seen ahead of the .9016 October 9 low. While capped by .9130/54, we remain unable to rule out further losses to the .8931/09 zone, the 2012 low and the base of a one year down channel. We would look for this to hold the downside and provoke a reversal higher,though.”