- Swiss National Bank intensifies measures against strong swiss franc. But no peg
- Swiss National Bank communication
- Swiss National Bank in EUR/CHF forwards – Traders
- BOE minutes: BOE voted 9-0 to keep rates unchanged in August. No one calling for rate hike now
- UK July jobless claims +37,100, worse than median forecast +20k
- Euro zone July inflation -0.6% m/m, +2.5% y/y, exactly as expected
- Irish FinMin says would insist that any new financial transaction tax apply to all 27 EU members
- German Greens leader Oezdemir: Euro bonds “not off the table”
- Iceland raises key rate 25bps to 4.5%
- UK debt plan can’t cover all its sins – WSJ
Busy morning, unfortunately
Most of the price action revolved around the machinations of the EUR/CHF cross. That sits at 1.1390 having traded as high as 1.1550 and as low as 1.1220. Rose early on anticipation the Swiss would announce peg. Major Swiss commerical bank notable seller above 1.1500. No peg and down we went in double quick time (collapse would best describe it)
Steadied around 1.1220 and were already rallying as talk circulated that the SNB was in the EUR/CHF forward market.
EUR/USD followed on the coatails of EUR/CHF to a large extent. Started around 1.4400. Did nothing early and then sold off sharply on the news Swiss had baulked at introducing peg. Well documented sell stops through 1.4385 were quickly tripped accelerating move. Buy orders clustered at 1.4350/60 were brushed aside on way to 1.4324 session low.
Then just as quickly we were recovering as EUR/CHF bounced. Middle Eastern buyers helped accelerate the rally and we got to session high 1.4454. ACB selling above 1.4450 slowed the upside momentum.
Cable had active day. Little changed at 1.6440. Inbetween though we did see a severe swoon in wake of BOE minutes/UK jobs data releases. No one at MPC calling for a rate hike now, while jobs data was a nasty shock.
Despite this double whammy we have bounced strongly from session low 1.6353. Talk of buy stops now through 1.6480 and more through 1.6500.
