FOREXYARD: Forex News Blog | |
- USD/CHF Likely to Enter Upward Correction
- Shifting Risk Sentiment Creates Volatile Trading Conditions
- Swedish and Norwegian Kroner Sink as Traders Flee Risk
| USD/CHF Likely to Enter Upward Correction Posted: 16 Mar 2011 01:51 AM PDT
The USD has dropped significantly versus the CHF in the past few days, and it is currently traded around 0.9180. And now as evident in the data below, the 8-hour chart is giving bullish signals, indicating that USD/CHF pair might go up. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. • Below is the 8-hour chart of the USD/CHF currency pair. • The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic. • Point 1: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction. • Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure. • Point 3: The Williams Percent Range shows that this pair was heavily over-sold peaked near the highest mark it could reach, and then turned a corner and now stands in a bullish posture. USD/CHF 8-Hour Chart |
| Shifting Risk Sentiment Creates Volatile Trading Conditions Posted: 15 Mar 2011 11:58 PM PDT
Following yesterday's heavy news day, currency values appear to be experiencing wide swings in value. The US went bullish versus most of its currency rivals, while the euro experienced mixed results. As this week reaches its mid-point, the rest of this week's busy calendar events appear poised to continue pushing forex values into volatile price shifts. Here is a roundup of today's leading events: GBP: Claimant Count Change – 9:30 GMT Britain's Claimant Count Change figure is a measure of the number of people claiming benefits related to unemployment for the first time over the previous month. Although it is considered a lagging indicator, it still carries high relevance for valuing consumer spending as this report represents an early glimpse into the employment situation of the British economy. A better than expected release could help the GBP recover some of its recent losses. USD: PPI – 12:30 GMT The monthly release of the Producer Price Index (CPI) represents the change in price of finished goods and services in the United States. It is one of the primary inflationary gauges used by the Federal Reserve to determine whether or not interest rates should be raised. A drastically different figure than what the forecast 0.7% could affect the USD greatly, but direction is unclear at this point given the risk-averse environment. |
| Swedish and Norwegian Kroner Sink as Traders Flee Risk Posted: 15 Mar 2011 03:27 PM PDT
As Japan braces for a potential nuclear meltdown, banks and global investors watching the crisis have begun to reevaluate their currency positions given the rapid shift in risk appetite. As many large investors turned to safe-havens following the devastating earthquake and tsunami, forex traders have watched the value of the Japanese yen and US dollar regain much of their former glory versus a number of the more peripheral currencies, like the Scandinavian kroner. Many banks have begun to adjust their expectations regarding interest rate hikes given the deteriorating global risk sentiment. Australia and New Zealand have even hinted at a possible reduction in rates by mid-year given the dramatic shift seen this past week. Additionally, finance ministers in both Sweden and Norway have begun to propose higher capital requirements for banks and stricter controls on lending. The measure has been attacked by businesses as undermining competition, but financial overseers appeared favorable towards these initiatives given the region's higher exposure to risk in comparison with its larger euro zone neighbors. The impact of the shift in risk sentiment, a decrease in business confidence regarding the region's proposed bank regulations, and falling commodity prices have combined to undercut the strength of both Sweden and Norway's currency values. Against the US dollar, the Swedish krona (SEK) fell from 6.3071 to 6.4749 over the past three days, while the Norwegian krone (NOK) underwent a similar shift from 5.5704 to 5.7214. |
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