Hangover of the decade on the Forex market The market is now digesting the impact of the major black swan event triggered by SNB’s decision not to defend the 1.20 floor level on the EUR/CHF anymore. As a result the CHF appreciated by 30% in less than 15 minutes. EUR/CHF is now back above 1.00 after a brief passage below this key level. Asian session was relatively quiet but still driven by risk aversion benefiting the JPY on a flight to safe haven capital inflows sending the USD/JPY to test 116.00 support level and bounce from there to trade at 116.522 at the time of writing. The Aussie and Kiwi are both really volatile partly lifted by strong gold prices and at the same time pressured by risk averse traders dumping their positions in high yield currencies. Both AUD/USD and NZD/USD have been trading sideways overnight. Gold looks to have been the big winner of this black swan event, the precious metal is on its way to close its best performing week for the year with after a daily performance of more than 2.70% yesterday. Gold is now trading slightly below 1260$. Today the market expects a series of key event to be released, inflation figures for Eurozone and the US in the morning followed by US industrial production, US capacity utilization and the university of Michigan consumer sentiment in the afternoon.
Posted on: Fri, 16 Jan 2015 08:28:28 +0000
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