|Day's Range||0.988 - 0.994|
|52 Week Range||0.9542 - 1.0229|
It looks like the calm in the currencies is drawing to a close and volatility is about to pick up. So far, so good. We’re at a crossroads these days: after a recent string of declines, the USD appears to be catching a bid. This is not without repercussions and a move either way will be profoundly felt across the markets. But which way that move will be? Read on to find out – and also get positioned accordingly.
With the franc having touched a two-year high against the euro, SNB President Thomas Jordan and fellow policy makers are feeling the pressure from risks such as trade tensions, a German industrial slump, Italian politics and Brexit. It’s quite a difference from 2018, when the currency’s weakness provided an unused opportunity for raising the deposit rate from a record-low -0.75%. While no economist surveyed by Bloomberg expects a rate change on Thursday, there could be a tweak to its language on the franc.
Japan and Switzerland are the largest global sources of foreign direct investment, so a cooling could stymie outflows from both and buoy their currencies, strategist Zach Pandl wrote in a note to clients dated Thursday.
Moody's Investors Service ("Moody's") today assigned an A1 global foreign currency debt rating to Banco del Estado de Chile's (Banco Estado)'s CHF150 million fixed-rate senior unsecured notes maturing 6 June 2025. The rating has a stable outlook. Banco Estado's A1 long-term deposit and debt ratings are in line with Chile's A1 sovereign bond rating.
It promises to be an interesting month, especially as we build to what is a ‘live’ FOMC meeting in July, with implied at 62% chance of a cut. If Trump doesn’t converge with the Mexicans and Chinese then the Fed start chopping and that has huge implications – gold bulls will be feeling a tad excited right here.
Switzerland’s national bank should work with large industry players to develop a Swiss franc token, according to a report by the Avenir Suisse think tank on June 4. Avenir Suisse is an independent privately funded think tank, with a yearly budget of reportedly 5 million Swiss francs ($5 million). Despite the opportunities that distributed ledger technology (DLT) is creating in the country’s finance industry — especially in trade finance, asset management and capital markets — researchers argue that the debate surrounding digitization is focused too much on the risks.
The U.S. dollar fell on Monday morning, hitting a 4-1/2 month low against the Japanese yen and a two-month low against the Swiss franc as President Donald Trump hardened his trade stance toward countries beyond China. Trade tensions have taken center stage in recent weeks as Trump has increased tariffs on Chinese imports, threatened to raise tariffs on Mexican imports and removed preferential trade treatment for India. The mounting tension has prompted investors to move out of riskier assets like U.S. stocks and into safe-havens like the yen and franc.
The Swiss franc rallied to its highest levels in nearly two years against the euro on Monday as U.S. President Donald Trump hardened his trade stance to countries beyond China, prompting investors to move into perceived safe-haven currencies. Trade tensions have grabbed centre stage for investors in recent weeks after Trump increased tariffs on Chinese imports, threatened to raise tariffs on Mexican imports and removed preferential trade treatment for India. Rising strains on trade have prompted investors to dump risky assets such as equities and flock to low-yielding currencies such as the yen and the franc with the latter flirting close to levels where the Swiss National Bank has traditionally intervened to keep the currency weak.
The yen brushed a more than four-month high against the dollar on Monday and the Swiss franc rose as U.S. President Donald Trump's hard stance on trade broadened to countries beyond China, stoking investor demand for safe-haven assets. In a recent development, U.S. and Mexican officials were preparing for trade talks after Trump vowed to impose punitive tariffs on all Mexican goods in an intensifying dispute over migration. No one was really expecting it to the same extent they were with China," said Chris Weston, Melbourne-based head of research at foreign exchange brokerage Pepperstone.
The U.S. dollar fell on Monday after St. Louis Federal Reserve President James Bullard said an interest rate cut "may be warranted soon," given the rising economic risk posed by global trade tensions as well as weak U.S. inflation. Bullard said that while the Fed cannot respond to every change in the rapidly evolving trade feud, recent events like the unexpected announcement of new tariffs on Mexican imports have created "an environment of elevated uncertainty... that could feed back to U.S. macroeconomic performance" as the global economy slows. "Though we think the recent warning shot towards Mexico could be resolved, the road ahead on the global trade front is likely to remain challenged until the G20 later this month," wrote Mark McCormick, global head of foreign exchange strategy at TD Securities.
The wave of risk aversion sent sovereign bond yields tumbling across the world. The mood darkened after the People's Daily newspaper, owned by China's ruling Communist Party, said Beijing was ready to use rare earths for leverage in its trade dispute with the United States. "Concerns about global trade are being felt across asset classes and the currency markets are feeling the pressure," said Nikolay Markov, a senior economist at Pictet Asset Management.
Based on the early price action, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the 50% level at 97.535.
Thursday brought us gains on two important European currencies: CHF and EUR. The first one was gaining traction from some time already but for the second one that is something new and should be rather considered as a short-term correction.
Financial service provider SIX is developing a stablecoin pegged to the Swiss franc, a company spokesman confirmed to Cointelegraph on May 23. The company is also planning to launch a blockchain-powered exchange for digital tokens in the second half of 2019, but the spokesman said he was currently not at liberty to discuss further details concerning whether the stablecoin will operate on that exchange. SIX also runs Switzerland’s top stock exchange — and earlier this month, a top executive revealed that the company is planning to issue its own tokens on the upcoming digital exchange.
SIX, the Swiss national stock exchange group, is working on creating its own stablecoin pegged to the Swiss franc.
The Japanese yen and the Swiss franc firmed on Wednesday as risk appetite remained weak in the backdrop of festering trade tensions between the United States and China. While risky assets heaved a sigh of relief overnight after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies, the lack of a significant breakthrough has kept investors on edge. "We are still skeptical over a long-lasting recovery," said Charalambos Pissouros, a senior markets analyst at JFD group.
Based on the early price action and the current price at 97.900, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 97.950.
May is definitely an interesting month on the market. It is hard to generally say if this is a month of a USD, or safe heavens or for example Bitcoin.
June U.S. Dollar Index traders should keep an eye on the Euro since it is heavily weighted in the index. The Dollar Index could weaken if the EUR/USD takes out 1.1164 and strengthen if the EUR/USD breaks through 1.1152.
Moody's Investors Service ("Moody's") has today assigned an A2 rating to Banco de Crédito e Inversiones's (Bci) CHF175 million fixed-rate senior unsecured notes maturing on 22 November 2024. The rating has a stable outlook.
Investing.com - The Chinese offshore yuan lost its initial impetus and traded little changed against the U.S. dollar on Tuesday as China’s central bank supplied liquidity, dampening a rebound from 2019 lows.