Octa trading broker
Open trading account

Forex: EUR/CHF extends its correction, around 1.2350/55

The Swiss franc resumed its appreciation against the single currency on Monday, as risk aversion is dominating the global markets, currently in the mid 1.2300s after a failed attempt to reach 1.2400 overnight.

“EURCHF has lagged the move higher in the euro crosses, remaining pinned at 1.24. This points to ongoing investor caution in Switzerland about the Eurozone's crisis. In addition Switzerland's still high current account surplus is capping the cross… We think EURCHF will remain supported on dips towards 1.22-1.23 given the improvement in Eurozone sentiment for now”, assessed M.Mohi-uddin, Director of FX Strategy at UBS.

At the time of writing, the pair is losing 0.40% at 1.2349 facing the immediate support at 1.2322 (Lower Bollinger) ahead of 1.2307 (low Feb.1).
On the upside, a break above 1.2483 (Upper Bollinger) would clear the way to 1.2515 (high Jan.29).

Forex Flash: Japanese GPIF fund plans to diversify towards stocks – UBS

According to Research Analyst Gareth Berry at UBS, “Hedge funds based outside of Japan have been largely responsible for the three-month old rally in the USD/JPY. Indeed, we are frequently asked when Japanese real money might get involved and whether this could lead to another round of yen selling.”
Read more Previous

Forex Flash: BoE to target nominal GDP levels? – Goldman Sachs

Mark Carney, who will replace Mervyn King as BoE Governor in July, recently argued that central banks should make greater use of explicit forward guidance in “extraordinary” times, including, if necessary, changing their remits to target the level of NGDP (nominal GDP) rather than the inflation rate.
Read more Next