EUR/CHF drops nearly 2 % overnight - Forex Trading Update

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by: fxsolutions
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Date: Thu, 22 Sep 2011 Time: 12:10 AM
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Tommy Molloy, Market Strategist at FX Solutions (http://www.fxsolutions.com/), provides forex traders with an overview of currency market activity and news on 31st August 2011, including news of a fall for EUR/CHF.

"At first glance, markets today look like they have suffered a significant bout of risk aversion, as EUR/CHF has dropped nearly 2 % overnight. On closer examination, it appears that the SNB was conspicuous by their absence in the open market, and the CHF has rallied accordingly. Outside the CHF moves there has been little to grab hold of overnight. The ADP employment number came out close to expectations (91k Jobs created versus expected 100k) and had limited impact. It is likely that risk will be pared further into Friday's all-important NFP number, though we have some bridges to cross first, notably Chicago PMI in about an hour, and tomorrow's important ISM manufacturing."

Factory Orders

"Factory Orders came out better than expected at +2.4 % versus expectations of +1.9 %. The USD has garnered some support from this above consensus statistic. Equities too are trading higher, boosted by today's economic data."

Chicago PMI

"The Chicago PMI was a little better than expected, at 56.5 versus expectations of 53.5, though positive market reaction has been muted by the regional nature of the report. Despite the positive surprise, the index is at its lowest level since November of 2009. Tomorrow's ISM number is considered a more important statistic. The consensus for tomorrows release is an anemic 48.7 (A number below 50 signifying contraction in the economy). FX ranges have been uninteresting thus far in the US session."

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About FX Solutions

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