Yesterday’s session was headlined by the SNB’s latest monetary policy meeting, amid swirling rumours of a rise in the EURCHF exchange rate floor. Instead however, Swiss policy makers opted to keep policy unchanged, leaving interest rates at 0.00% and the EURCHF floor at 1.2000. The statement offered very little new information other than some mild adjustments lower for growth and inflation in the coming years; but the deterioration in their outlook was not deemed to be severe enough to warrant further central bank action at this stage.
Now that the SNB meeting is out of the way, there are very few other scheduled events between now and year’s end that are likely to garner the same sort of market-moving attention. Instead we head gradually towards the holiday season lull, traditionally characterized by low volatility and participation. Supporting this view, EURUSD has climbed back above the 1.3000 level overnight; with the moves appearing to be purely profit-taking as we wind down into the holidays as opposed to the start of a reversal higher. Equity markets have also had the opportunity to pare back some recent losses, with the Nikkei +0.3%, Hang Seng +1.7% and Shanghai Composite +2.0%.
In today’s session the data calendar is relatively light, featuring only Eurozone trade balance figures, the Swiss KoF forecasts for December, and US CPI. Bank of England Governor Mervyn is slated to speak on a panel discussion in Rome this morning, so there is potential for some interesting comments to emerge during the early European session.
Now that the SNB meeting is out of the way, there are very few other scheduled events between now and year’s end that are likely to garner the same sort of market-moving attention. Instead we head gradually towards the holiday season lull, traditionally characterized by low volatility and participation. Supporting this view, EURUSD has climbed back above the 1.3000 level overnight; with the moves appearing to be purely profit-taking as we wind down into the holidays as opposed to the start of a reversal higher. Equity markets have also had the opportunity to pare back some recent losses, with the Nikkei +0.3%, Hang Seng +1.7% and Shanghai Composite +2.0%.
In today’s session the data calendar is relatively light, featuring only Eurozone trade balance figures, the Swiss KoF forecasts for December, and US CPI. Bank of England Governor Mervyn is slated to speak on a panel discussion in Rome this morning, so there is potential for some interesting comments to emerge during the early European session.
By
M.Zohaib Gadit
Forex Trading Consultant
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