Nov 09


  • BY: Donal Kelly
  • November, 09th, 2015 19:38 +00:00

Good evening,

the FX market today is calm after the US dollar soared last week and sent many pairs near important technical levels. EurUsd is trading at 1.0758 (+0.17%), up 18 pips and GbpUsd is gaining 58 pips at 1.5120 (+0.39%). UsdJpy is unchanged at 123.11. UsdChf still trading above the parity at 1.0032 (-0.24%).

The currency market anticipated the sharp rise of probability of a rate hike by the Federal Reserve that should happen the next month. Equities today are reflecting with delay the fundamental reasons that lifted the Greenback. Cheap liquidity may end soon, thus borrowing will became more expensive and exports lead corporations will struggle with clients with weak currencies. The multiyear rally started 6 years ago in global equities may test a correction if the global macro picture will be worse than the consensus. The DJIA is  losing 191 points at 17,719 (-1.07%) and Nasdaq is down 60.7 points at 5,086.42 (-1.18%).

Gold is rebounding 3$ after last week selloff on precious metals: the commodity is trading at 1,090.7 $/oz. Crude Oil is losing 37 cents at 44.92 $/barrel (-0.84%) and below 42.7$ it may test area 38$/barrel, the 2015 bottom.

During the Asian session will be released the Chinese CPI at 01:30 GMT and the European session will start tomorrow with the Swiss Unemployment Rate, that could be a catalyst to send UsdChf  to 1.0237, the level traded just before the Swiss National Bank decided last January to eliminate the EurChf floor level.  EurChf on a daily chart is trading in a narrow band because the Euro and the Swiss Franc as well are losing ground against the US dollar, thus the exchange rate between the shared currency and the Franc has a low volatility.

(19:35 GMT)