EURCHF tumbled today as the Swiss Franc saw demand ahead of The Fed and ECB.
The swissy is the strongest vs the euro since Sept 2022 (with the biggest strengthening of CHF vs EUR since January today)... Source: Bloomberg, www.zerohedge.com
Traders are boosting their bets against the US dollar.
Source: The Daily Shot
Most Expensive Euro on Record Has Traders Braced for Declines
As the Nominal effective exchange rate reached an all-time high, a dovish message from ECB this week can add pressure on the euro. Source: Bloomberg
New bulls entering the EURUSD market
EURUSD has broken through strong resistance that has capped advances all year at 1.1080/90. Last week the push higher saw a close at 1.1245, indicating new bulls entering the market and potential for the currency to enter a new range.
Looking ahead, we should see a support around 1.1090/1.1100. On the upside, we might go back to today's high of 1.1276 and potentially to 1.1590, the 76% Fibonacci line from 2021.
Source: Santander & Bloomberg
Dollar’s worst slump since November has some strategists saying a turning point is finally at hand for the greenback
Standard Bank expects ‘multi-year downtrend.’ Dollar bears can also lean on valuation measures. Dollar is overvalued in terms of purchasing power (Big Mac Index) against all major currencies except Swiss franc, the Swedish/Norwegian krona, and the Canadian dollar. Source: HolgerZ, Bloomberg
The pund is the best performing currency (against dollar) YTD ahead of the CHF
The pound is the best performing currency (against dollar) YTD ahead of the swissie. The japanese yen is the only G10 currency to have lost value vs. dollar since the start of the year. Source: Bloomberg
This didn't do the headlines but the fact is that Trade-weighted Euro reached a new all-time high this week
Source: Bloomberg
The Bloomberg Dollar Spot Index slumped to a 15-month low, with the gauge now down over 11% from a September peak
The Bloomberg Dollar Spot Index slumped to a 15-month low, with the gauge now down over 11% from a September peak. hedgefunds had been bracing for weakness, as they turned net sellers of the dollar for the first time since March, according to data from the Commodity Futures Trading Commission aggregated by Bloomberg. The dollar’s resilience has confounded bears who had warned that the currency was headed for a multi-year decline following a surge in 2022. But there’s a growing conviction that they may finally be proven right as easing inflation backs the case for the us central bank to wrap up its rate-hike campaign in the coming months. Source: Bloomberg
