USDCHF Haven demand boosts franc amid renewed Brexit uncertainty
The USD/CHF, EUR/CHF and GBP/CHF were all hovering near the day’s lows at the time of writing.
Share this:
Thanks to renewed concerns over a hard Brexit, the pound has continued to trade lower this late in Europe, boosting the Swiss franc on haven demand. The USD/CHF, EUR/CHF and GBP/CHF were all hovering near the day’s lows at the time of writing and more losses could be on the way for these franc pairs as we head towards year end.
In fact, the USD/CHF has been making lower lows and lower highs since that failed breakout attempt above parity at the end of November. Rates have since broken below the 200-day average, a bullish trend line and the last low prior to that failed rally at 0.9870. This level has turned into resistance and so long as we hold below it, the path of least resistance would be to the downside.
As such, I wouldn’t be surprised if rates continued lower to eventually take out 0.9660 – this year’s low that was formed in August.
Source: eSignal and City Index.
Thanks to renewed concerns over a hard Brexit, the pound has continued to trade lower this late in Europe, boosting the Swiss franc on haven demand. The USD/CHF, EUR/CHF and GBP/CHF were all hovering near the day’s lows at the time of writing and more losses could be on the way for these franc pairs as we head towards year end.
In fact, the USD/CHF has been making lower lows and lower highs since that failed breakout attempt above parity at the end of November. Rates have since broken below the 200-day average, a bullish trend line and the last low prior to that failed rally at 0.9870. This level has turned into resistance and so long as we hold below it, the path of least resistance would be to the downside.
As such, I wouldn’t be surprised if rates continued lower to eventually take out 0.9660 – this year’s low that was formed in August.
Source: eSignal and FOREX.com.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
EUR/USD, USD/JPY Outlook: Oil, yields and an FX identity crisis
Crude oil is setting the tone across rates and FX, leaving EUR/USD vulnerable and USD/JPY caught between higher Treasury yields and the growing threat of intervention
AUD/USD Analysis: What's Next for the Australian Dollar After the RBA Decision?
Recent trading sessions have reflected a more neutral tone around the Australian dollar. This can be seen in AUD/USD price action, which has posted moves of roughly 0.2% over the last two sessions without establishing a clear direction. Much of this lack of momentum is linked to expectations surrounding the next policy moves from both the Reserve Bank of Australia (RBA) and the Federal Reserve.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.