Forex Trading

EUR/CHF: Trading the Swiss National Bank Interest Rate Decision

David Song, Currency Analyst and Michael Wright, DailyFX Research — Wed, 10 Mar 2010 20:17:05 +0000

The Swiss National Bank is widely expected to hold the benchmark interest rate at 0.25% in March as the central bank aim to balance the risks for the economy, and comments following the rate decision is likely to spark increased volatility in the exchange rate as investors weigh the outlook for future policy.

More Intervention from the Swiss National Bank in Forex Trading

Forex News | GFT Forex — Wed, 10 Mar 2010 16:45:56 +0000

Currency trading with the Swiss franc

The Swiss National Bank appears to be intervening -- albeit it on a very small level -- in forex trading again. The SNB has been intervening on occasion since last year, when it announced a policy meant to keep the franc lower against the euro in forex trading.

MarketWatch reports on the possibility that the SNB is intervening again:

Another round of rumored currency intervention by the Swiss National Bank Wednesday appeared to be a warning shot designed to chill traders looking to sell the euro versus the Swiss franc as monetary policymakers prepare to meet, analysts said. ...

"If it was an SNB intervention, it was probably one of the smallest ones we've seen ... it's really just sort of backing traders off (of buying the Swiss franc) ahead of tomorrow's meeting," said Peter Rosenstreich, chief market strategist at ACM in Geneva.

At any rate, the Swiss want their currency weak in relation to the euro in forex trading, since during times of recession and economic uncertainty it can be beneficial to have a weak currency.

USD/CAD Channel Presents Scalping Opportunity

John Rivera — Wed, 10 Mar 2010 16:20:35 +0000

The Canadian dollar continues to find support on strong domestic fundamentals and an increase in broader optimism. The USD/CAD has closed lower for eight straight days and is looking to end that streak today. However, we have seen daily volatility condense which has created an ideal scalping opportunity. The pair continues to trade along a descending support trend line which is limiting downside risks and providing a target level for traders.

A Drop in German Exports Casts Doubt on Recovery

John Rivera — Wed, 10 Mar 2010 13:13:47 +0000

The German trade balance surplus unexpectedly shrank in January from 13.4 billion to 8.0 billion as falling exports offset rising imports. Demand from abroad dropped by 6.3% against forecasts for a 0.5% improvement led by weakness from other Euro-zone members.

Euro Holds Narrow Range, British Pound Extends Decline as U.K. Manufacturing Falters

David Song — Wed, 10 Mar 2010 11:43:53 +0000

The Euro tipped lower against the greenback on Wednesday, with the exchange rate slipping to a low of 1.3545 during the overnight trade, and the single-currency is likely to maintain the narrow range carried over from the previous week as policy makers in Europe aim to support the economies operating under the fixed-exchange rate system.

Oil, Gold May Decline as Monthly US Deficit Hits Record

Ilya Spivak — Wed, 10 Mar 2010 09:45:18 +0000

Oil and gold prices may decline amid expectations for a sharp increase in borrowing costs as the US Treasury’s monthly budget statement shows the largest monthly shortfall since records began nearly 33 years ago.

British Pound Little Changed in Asia, Industrial Production on Tap Ahead

Ilya Spivak — Wed, 10 Mar 2010 06:31:43 +0000

The British Pound was little changed in Asian trade, treading water near familiar levels ahead of a report that is expected to show industrial production shrank at the slowest annual pace in nearly two years.

Opening Comment 03.10

Joel Kruger — Wed, 10 Mar 2010 05:42:39 +0000

While most currencies have been consolidating in a tight range since the North American close, Kiwi stands out and has outperformed on the session, with no direct catalyst for the demand other than some pre-RBNZ volatility.

Canadian Dollar Keeps Uptrend on Growth

Jan Baros — Wed, 10 Mar 2010 03:37:27 +0000

The Canadian dollar had an amazing eighth day of consecutive gains versus its southern counterpart as currencies tied to growth profited from another session of optimism in commodities and equities markets, allowing the loonie to remain bullish.(...)
Read the rest of Canadian Dollar Keeps Uptrend on Growth (110 words)

Posted on Forex News.

Asian Economic Affects Yen’s Price

Jan Baros — Wed, 10 Mar 2010 02:52:17 +0000

The Japanese yen had a negative performance this Tuesday versus most of the Asian and South Pacific key-currencies as evidences suggest that commodity producer countries in the region, as well as emerging markets, are likely to outperform the Japanese economy this year, affecting the yen as well.(...)
Read the rest of Asian Economic Affects Yen’s Price (125 words)