CHF trading outlook january 24 2012

forex trading outlook today - CHF trading outlook january 24 2012 : The USD/CHF trading at 0.9273 having opened this morning at 0.9369 The dollar fell against all major currencies as a Greek deal seemed to take shape and the French Minister held a press conference stating a deal will be on the table shortly.

As risk moved from the USD the dollar lost strenght as evident with this duo. Tomorrow we might see a deal or maybe not.

EUR/CHF Fundamental Analysis Jan. 24, 2012
The Manufacturing Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

Analysis and Recommendations:

EUR/CHF is trading 1.2073. in a surprised show of strength today, the euro surged pushing up by a EU report showing a boost in consumer confidence filed today, a leading indicator that predicts consumer spending, and plays a major role in overall economic activity.

Again, there have been promises of deal with creditors in Greece, but at this writing it is not clear if there is a deal or isn’t a deal, the EU leadership seems to think that a deal is doable, which has pushed the euro. Aided by a succesful German bond sale, the euro is showing confidence against all its trading partners.

IMF Christine Lagarde said euro zone governments should incorporate the region’s exiting bailout fund, the European Financial Stability Fund, into the European Stability Mechanism, increasing the size of the permanent bailout fund in order to restore investor confidence in the region.
Investors seemed to like this idea helping sustain the euro surge. Whereas the sterling, fell against the euro, with little economic support and continued worried about high unemployment in the UK

The pair have been trading strangely today, but a lot can be attributed to the possibility of the SNB interveening if the pair drops below the 1.20 level, if the collective market wishes to break under 1.2000 there is little long-term effect that the SNB can exert.

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