Deutsche with shorts on EURCHF

7 February, 2017

We’ve just pointed out a bearish picture on EURCHF, Deutsche Bank has a similar view, bank says that SNB could let EURCHF to let towards parity. 

DB points to the fact that Trump administration has spoken out against alleged currency manipulation from China, Japan and Germany. Yet the country most at risk of meeting the Treasury’s official criteria of currency manipulation is probably Switzerland. According to DB, the risk of coming into US focus, perhaps as early as 2018, could add to the rationale for the SNB to gradually discontinue market intervention. 

DB says that the SNB letting EUR/CHF fall toward parity to avoid friction with the US may be the lesser evil for the Swiss export-oriented industry than incurring US retaliatory measures, and it could join the financial sector in demanding an exit from unconventional policy, source: Deutsche Bank

Bank remains short EURCHF targeting 1.02, Deutsche says that if speculators also upped the pressure, continued intervention would become ever costlier. 


Source link  
Oil remains elevated, US production keeps rising

Baker Hughes report for the last week has showed another rise of US oil producers activity. The number of active rig counts rose by 8 w/w which obviously favours the further rebound of supply on the market...

DAX reached the nearest resistance

European stocks are trading higher today due to a general risk-on triggered by Donald Trump. He commented on deregulation and corporate tax cuts and commited to introducing a plan in 2-3 weeks which was more than enough for US stocks to surge towards new record highs...

DAX struggling to deny that it is caught by bearish channel

The sentiment on European equities is very cautious, but the main indices remain slightly above zero today. The Dax made an attempt in the morning to shake off its recent weakness, but upward move faded within one hour...


DAX - a volatile start of the week

The DAX started the week with a fall of 100 points that was quickly corrected. Currently the index a bit higher on the day and the first drop should be associeted with the political news...

Stocks begin the week on the back foot

Stock markets have started out in a defensive mode this morning with the FTSE 100 falling more than 60 points. Donald Trump is in the headlines once more as his latest executive order signed late on Friday has caused a furore around the globe...

USD back on track

The overnight trading results in a continuation of the US dollar gains. A broad based recovery of the US currency is what has been missing yesterday morning to call the market behavior a proper return of the Trump trade...


UK GDP grows faster than forecast

This morning saw the release of data which shows that the UK economy grew faster than expected in the final quarter of 2016. The pound is higher on the day but has seen some weakness since the release, perhaps due to some traders seeing this as a good opportunity to book some profits after a strong run higher in the past couple of weeks...

A small sell-off on Oil after API

After a closing bell on Wall Street, API issued a weekly report on Crude Oil inventories in the US. The report is pretty bearish for oil. Inventories rose by 2.93mln bbl with expectations at 2.5mln. If the data is confirmed it will be the 3 consecutive week of growth...

The strong start of the new US presidency makes USD softer

So this is how Donald Trump first day in office looks like. He has easily made it to the headlines, In his first executive orders he confirmed that NAFTA will be renegotiated and that the US no longer applies for the TPP...

  


Share: