JPY and CHF are fading against demand for risk

EUR/

Tuesday was an eloquent reminder of the fight, that is now going on between the dollar- and bulls. Yesterday the victory was gained by the former. At the end of the day was trading around 1.3260, that is 40 pips below the daily open, and a few hours before that, at the beginning of trading in New York, the pair had managed to go as low as 1.3230. Looking back at the Asian and European sessions, we see that already then the pair couldn't get a grip on the levels above 1.3310. A few attacks were repulsed, so even the ZEW Business Confidence Index at its favourable rate was of no help. This index went beyond , having grown from 36.3 to 42.0 against the forecasted 40.3.  The similar indicator for the whole eurozone demonstrated an even stronger growth, from 32.8 to 44.0. It is a good signal for the markets, which should significantly  ease the pressure on the single currency. It would have surely happened, if the rivals of the hadn't progressed impressively as well. The Retail Sales, published three and a half hours later, once again confirmed the strength of consumer activity in the USA, which again let commentators consider chances of the QE rollback already in September. The sales grew by 0.2% in July, which meets the expectations, at the same time the growth rate for the preceding month was raised much – to 0.6%. Besides, the core index of sales (automobiles excluded) went up right by 0.5% in July against the expected 0.4%. Today's agenda contains the German GDP estimate for the second quarter and also the index of German Producer Prices. We are still sure that yesterday the bulls retreated just for a while and will try to gain revenge today.

GBP/USD

Though the couldn't boast of any impressive results yesterday, it still felt more confident against the dollar than the euro. Thus, closed the day at 1.5440 against the daily open of 1.5460. Anyway, during the day it jumped as high as 1.55. Apparently, it was due to triggering stops in EURGBP, when the pair broke the support at 0.8580. In the next 5 minutes it quickly lost about half a figure, but then over a few hours returned to the key level, where it keeps trading now.

USD/JPY

Those, who invest into Japan, take positively the speculations over the possible cut of the corporate tax in the country. The messages, regarding this, help Nikkei stocks grow, pulling along . By now the pair has already managed to go beyond 98.00, which is by 2.3% above the weekly open. 

USD/CHF

The Swiss franc is holding a weak position at the moment. Against the messages regarding business activity growth in the developed countries, this protective currency is tarnishing. The franc is suffering not only against the dollar, but also against the euro and . USDCHF has risen to the week-and-a-half highs, but, what is more important, has broken through the resistance of the downtrend. We can't exclude that today there again will be attempts to return inside this channel, breaking through 0.93, but we think that testing of the previous high at 0.9390 is more likely to take place. 

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