Forex Market Pulse (458/729) – genxfxtrader
Hi David, thank you , it was my view of what happened and so I’m honest is what previous and comment on it for weeks, the graphics were eloquent what was set today analysts as in line with what I said yesterday I
A CHF very strong, just the impact on the very negative Swiss economy and if we add that the Swiss economy is closely linked to the EU for its strong trade links, with strong CHF lose a lot of competition, but the SNB did not have another option, leave the barrier with the tsunami is expected by the flood of EUR on the market before the QE and if it is in the high range of 1 trillion EUR not tell you, the SNB could not cope with it any of ways
If volatility is served for a while crossing safer foroperate the EUR / USD for its high liquidity and volume, thereby wild forks and EUR / CHF apart is the best crossover to follow by coach is avoided is correct in assuming less risk, if you hit in the direction, lower benefits
I wish I knew how they were going to climb lol will depend on how the QE is implemented, if it is a strong QE and affects all countries if you’re likely to see the ibex at 11,000. As I have commented to me it seems that Syriza “has relaxed” a bit and you will do will pay part of the debt, not all, but nothing … We’ll see what happens, presented some interesting weeks!
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By the way Felipe What do you think of silver? This used to have a highly positive correlation with EUR / USD, but now this has become negative correlation, a -0.79 (in a range between -1 and 1). According to the theory intermarket the currency to anticipate raw materials and as Oscar Cagigas Eur / Usd works well as a predictor of silver. Do you think we will see falls in silver?
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David la Plata moves criteria to day purely speculative today, besides its tendency in almost all maturities is bearish and therefore the correlacciones with other assets are very cyclical and therefore unreliable for
I would set more in correlaccion OIL -EUR / USD here if there is a correlaccion, if the EUR / USD reversed, that sooner or later ara ((in Forex trends are much shorter than in the bags, except crosses with AUD, CAD, NZD and little else )) the tendency OIL almost certainly ara also obviously with much more volatility
Thanks David, we’re all waiting events will be entretenido.s2
how far can you get to drop the euro?
The decision by the SNB to relinquish control of the exchange rate of the franc, with whom he had been holding back an appreciation that became threatening its economy in the harshest moments of the crisis in the eurozone, has caught the investors on the wrong foot, but responds largely a factor that the market is already pricing in months: activation by the ECB of an ambitious debt purchase program.
The Swiss central bank had fired his balance with daily sales volumes of 2,000 million Swiss francs to raise the equivalent of 85% of GDP. And it has decided to stop this spiral to the evidence that injection of euros that prepares the ECB would require new efforts to stem the rise of its currency. In fact, without actually activating a quantitative easing to European, already expected imminently entire market, the ECB has scored a first goal which stimulate inflation through the depreciation of the euro. The first advance of his intentions in May last year, and led to the reversal of the European currency, which depreciated throughout the year 12%. And the proximity of the announcement of an ambitious debt purchase plan, which is expected for the meeting next Thursday 22, is precipitating falls at the beginning of the year.
“The trend is bearish unmitigated” says an expert on the euro
The European currency has already reached Wednesday dropped below its level of $ 1.1667 foundation. And the unexpected decision by the SNB caused a further drop to intraday lows of 1.1568 euros. At the start of the year and lost more than 4%. “The euro has fallen at the beginning of the year as expected, but more quickly than initially estimated. The $ 1.10 is the next level but the dollar peg could be reached before the summer, unless the Fed decided to postpone the rise in interest rates if there are signs that its economy is affected by the global slowdown. ” Pedro says Servet, head of currency Citi in Spain.
The euro already largely discounted activation of QE by the ECB, but this shall not preclude the continuation of its depreciation against the dollar toward parity with the greenback. “After losing 1.20, the next stop was the 1,16 and is now heading towards $ 1.10. The trend is bearish unmitigated “adds Carlos Fernández, an analyst with Foreign ExchangeXTB. In the first week of the year, bearish positions in the euro have increased to be around 4,000 contracts amounting to 500 million euros leaving total bassist net position accumulated 17,000 million euros, which gives an idea of the forecast further declines for the currency.
“The market positions in futures betting by a stronger dollar against the Swiss franc have almost doubled in the first week of the year. The decision of the Swiss National Bank has done enough damage thus “adds Servet, which provides a new appreciation of the franc. They suffice for this turbulence arriving from Greece and Russia, in addition to the injection of the ECB.
“The $ 1.10 is the next level but the dollar peg could be reached before the summer, unless the Fed decided to postpone the rise in interest rates if there are signs that its economy is affected by the global slowdown” . Pedro says Servet, head of currency Citi in Spain. ”
Very good contribution, thank you very much.
It is true that this pair is still dangerous (well, crosses with the CHF in general) and have very stable reason is not, but compared to yesterday seems as normal ajajajajajaj world. We’ll see what happens on day 22 and day 25 sure will be very interesting to see the reactions of markets.