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Forex: USD/CHF above 0.9100 mark

The USD/CHF rose to as high as 0.9110 during the European session, allowing there the test of the 0.9100 psychological level as support. The pair is moving back to the highs as of writing, up by +0.31% on the day.

“The market looks through all of them though and uses the  rise in Spanish unemployment as excuse to push EUR/USD lower as the market worries whether Draghi tries to verbally intervene in euro or rates markets on Thursday”, wrote TD Securities analyst Richard Kelly. “We think it is doubtful he takes any strong verbal intervention, but the worries and market reducing positions into the ECB on Thursday may bias EUR lower until we get through the press conference”, he added.

“However, corrective action is seen preceding fresh weakness, with initial resistances at 0.9100/20 zone and 0.9150, expected to limit upside attempts for now”, wrote Windsor Brokers analyst Slobodan Drvenica.

Forex Flash: BoE to be utilize more unconventional approach – Goldman Sachs

According to the Economics Research Team at Goldman Sachs, “The UK’s disappointing growth performance primarily reflects insufficient demand and short-term supply factors, rather than long-term weakness in the supply capacity of the economy. For this reason, we sympathize with those who argue that the BoE could and should do more to support the recovery – ‘effective’ interest rates in the UK have remained stubbornly high and credit availability has been too tight.”
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Euro bulls chilling out

Markets can’t go up or down forever. A correction in EUR/USD was expected and today the euro traders have found the perfect excuse in the horrible figures out of the Spanish unemployment, which...
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