News

Swiss Franc breaches parity - but for how long ?

05/02/2019

The Swiss Franc has this morning managed to (just about) breach parity with its US dollar counterpart and is currently trading at 1.0010. This is the highest it’s been since it sailed past this level on the way down in mid-November.  This move up appears to lack any real momentum, and we are unconvinced in the short term. We would expect to find some Stop Loss orders further up just over 1.0120. Until that level is breached we do not see any real investor value in buying here. This seems to be a reactive move rather than the beginning of a new trend, so we would be looking to sell into this as the rally progresses. We would also expect New York to come in and look at this as an opportunity to test its strength by selling into it to see if it wobbles. However, if it remains firm it’s unlikely that the big hitters in New York will allow themselves to stay short for too long, so it’ll be interesting to see how they react. Notwithstanding our opinion, the short-term fate of this particular pair will lie in the hands of Wall Street.

Share this news

Related posts

Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more
Forex News EU Flags 1.jpg

Decision time looms for Sterling

23/05/2019

Decision time looms for Sterling

Read more