Morning Report: 08.45
• Last night US markets rallied well from a weak opening position with the Dow Jones bouncing off the 11,000 level.
• The rally pushed money out of the US dollar and back into the Japanese yen & Swiss franc.
• The momentum has continued this morning with the Swiss franc today's currency of choice with the USD/CHF down 0.66%, the first significant falls since the start of the month.
• The Japanese yen isn't far behind with the USD/JPY down 0.4%, the first meaningful pullback since the 4th of this month.
• There isn't much significant movement beyond this with the movements of the pound and Aussie dollar largely dictated by the flows out of the US dollar and into the yen & Swiss franc. However there is some euro weakness developing as the morning progresses.
• Coming up today we have Canadian GDP at 13.30 with a slight dip expected. US CB consumer confidence follows at 15.00. In the afternoon we have some central banker talks with ECB President Trichet speaking at 15.30 and US Fed chairman Bernanke Speaking at 20.00.
EUR/CHF Trade Idea:
• The EUR/CHF is down over 0.7% this morning, but the pair is entering a zone of record lows. Despite the euro's previous weakness when the Greek crisis came around, the pair did not spend long at these levels.
• It may be a good idea to bet on the pair making a short visit to these levels once again. However the upside could be limited as well so an IN/OUT trade might be the best way to play this.
An IN/OUT trade predicting that the EUR/CHF will close between a low of 1.2950 and a high of 1.3400 could return a profit of 136% over the next 8 days.
Summary:
0 comments:
Post a Comment