EUR/CHF close to the cap
City Index November 13, 2014 8:06 PM
<p>So far today, it’s been a relatively calm FX session with tight ranges. GBP had the biggest move today, following on from the dovish BoE […]</p>
So far today, it’s been a relatively calm FX session with tight ranges. GBP had the biggest move today, following on from the dovish BoE comments in the inflation report.
The main points to be taken from the report were the revised downward growth for 2015 and that inflation could drop below 1%.
In more positive news, according the BoE, wage growth has risen above inflation and is set to continue to do so. GBP/USD is currently down 30 points – trading just below 1.5750.
The main afternoon data was the US jobless claims rise to 290k from 278k, which is, interestingly, still close to 14-year low. But it’s had little effect in the market so far as we sit in a consolidation mode until some more important data hits.
Later tonight we will hear from the Fed Chair Janet Yellen, which is usually a popular market mover, but there’s not much that’s expected to really move the USD.
The euro is still currently trading around the 1.2460 level and can’t find a direction from here. Maybe the answer will come tomorrow when the GDP’s from France and Germany will be announced.
Yesterday, the market started to pay close attention to the EUR/CHF and other CHF crosses as the EUR/CHF cap (1.2000) is getting close to possible SNB intervention as it’s currently trading at 1.2020. So, one to watch if gets close to these levels.
Supports 1.2450 1.2400 1.2370 | Resistance 1.2480 1.2530 1.2560
Supports 115.40 115.00 114.45 | Resistance 116.00 116.45 117.00
Supports 1.5700 1.5640 1.5525 | Resistance 1.5820 1.5890 1.6000
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