Daily FX Wrap: Some Size Selling Swiss
Following a volatile USD amid the unexpected less than hawkish tone from the FOMC yesterday, price action across FX markets today was fairly subdued.
Sellers in the franc were evident today; with the currency benefiting against its major pairs as the majority of movement was seen today in EUR/CHF and USD/CHF. EUR/CHF continues to march toward pre-floor removal levels, as the SNB are benefiting from the stronger EUR. EUR/CHF is now through 1.12, many touting as the big level that needed to be cleared ahead any test of 1.20.
The greenback fell to its lowest levels against most G10 currencies since the first half of 2015. Led by the buoyant Euro, further affecting the dollar basket. EUR/USD broke through august 15’s high, with a push for the 1.20 level possible. The main data came out of the US today, in the name of US durable goods, despite the big beat, no real reaction was seen in USD, with any USD bulls seemingly keeping a distance. Many touted the large beat to outperformance in Dow heavyweight, Boeing, who’s orders have likely skewed the data, evident with the ex-air figure missing expected.
Cad remains interesting, as USD/CAD trades around huge support levels. 2016’s low has been broken, however, bids are clear with the pair remaining above 1.2490. The Lonnie is one market that USD bulls could potentially see value against, with many assuming the CAD buying could slow.
Sterling continues its indecision as traders await any unravelling of Brexit talks ahead of next month’s BoE decision. The BoE’s last meeting in August is set to be the last without the team of nine, with David Ramsden appointed as the BoE Deputy Governor for Markets and Banking, beginning on September 4th.