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23 Sep 2013
USD/CHF as Bullard keeps greenback on its toes
FXstreet.com (Athens)- The USD/CHF manages to sustain its gains over 0.9100, after Bullard’s comments kept an underlying bid for the greenback.
USD/CHF is sitting on the fence ahead of today’s talks on behalf of Lockhart, Dudley and Fisher
The USD/CHF is trading slightly upwards since the opening of the Asian trading session, mainly due to the Fed’s Saint Louis Fed president Bullard, who mentioned that the U.S. central bank might move next month to reduce stimulus spending. However, the US news will soon recapture the interest of traders all over the globe. While a messy conclusion to the debt ceiling debate has the capacity to impact the Fed’s decision there is the risk that the knowledge that tapering will happen sooner than later, may even in short-term aspects boost the demand for risk-appetite assets. Finally, traders should bear in mind regarding the debt-ceiling, that the Government Accountability Office (GAO) mentioned last summer that ““that delays in raising the debt limit in 2011 led to an increase in Treasury’s borrowing costs of about $1.3 billion in fiscal year 2011. However, this does not account for the multiyear effects on increased costs for Treasury securities that will remain outstanding after fiscal year 2011.”
Technical Analysis on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF last week sold off to, traded through but held on a closing basis the 2012-2013 support line, which lies at 0.9094. Currently our favored view is for losses to hold this uptrend, however we would need to see a rapid bounce back above the 0.9146 August low just to alleviate immediate downside pressure and signal a return to 0.9261 – the 23.6% retracement of the move down from July. We note the 13 count and the TD perfected set up on the daily chart and if short we would tighten stops. Failure to hold over 0.9080 will see USD/CHF sell off to the .9023 2013 low and then the 0.8931 2012 low.”
USD/CHF is sitting on the fence ahead of today’s talks on behalf of Lockhart, Dudley and Fisher
The USD/CHF is trading slightly upwards since the opening of the Asian trading session, mainly due to the Fed’s Saint Louis Fed president Bullard, who mentioned that the U.S. central bank might move next month to reduce stimulus spending. However, the US news will soon recapture the interest of traders all over the globe. While a messy conclusion to the debt ceiling debate has the capacity to impact the Fed’s decision there is the risk that the knowledge that tapering will happen sooner than later, may even in short-term aspects boost the demand for risk-appetite assets. Finally, traders should bear in mind regarding the debt-ceiling, that the Government Accountability Office (GAO) mentioned last summer that ““that delays in raising the debt limit in 2011 led to an increase in Treasury’s borrowing costs of about $1.3 billion in fiscal year 2011. However, this does not account for the multiyear effects on increased costs for Treasury securities that will remain outstanding after fiscal year 2011.”
Technical Analysis on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF last week sold off to, traded through but held on a closing basis the 2012-2013 support line, which lies at 0.9094. Currently our favored view is for losses to hold this uptrend, however we would need to see a rapid bounce back above the 0.9146 August low just to alleviate immediate downside pressure and signal a return to 0.9261 – the 23.6% retracement of the move down from July. We note the 13 count and the TD perfected set up on the daily chart and if short we would tighten stops. Failure to hold over 0.9080 will see USD/CHF sell off to the .9023 2013 low and then the 0.8931 2012 low.”