The markets are trying to tak e a breather after the SNB gave them a charge in the last couple of hours. Dealers are chewing over the fact that the the SNB concentrated their efforts in USD/CHF rather than EUR/CHF, wondering what to make of it.
EUR/USD is contending with roughly a half-trillion spankin’ new euros sloshing around the global financial system in the wake of the ECB tender this morning.
If they treat “non-standard” measures in the eurozone the way they do in the US, EUR/USD will struggle down the road.That’s a big if, though. Mid-East buying was rumored yesterday and earlier today, so someone has faith in Trichet and Co.
A sustained move below the old range tops at 1.4010 in EUR/USD will prompt a deeper bout of long-liquidation today. US durable goods orders are next up for the market, seen falling 0.6% in May.
