Record Low for EUR/CHF

Posted on | August 31, 2010 |

• In spread betting, US stock markets sold off steadily the close with the Dow Jones closing down 1.39%.
• The wider S&P 500 closed below Friday’s open, erasing the rally.
• Japanese stocks experienced heavy selling with the Nikkei closing down 3.20%.
• The glass has shifted back to being half empty with the US dollar, Japanese yen and Swiss franc in demand as safe haven/carry trade unwind trades.
• The risk barometer, the AUD/JPY is down 0.3%, with the EUR/JPY and GBP/JPY down 0.6%.
• The Aussie dollar is actually holding up reasonably well with the AUD/USD break even for the day. This comes on the back of stronger than expected Australian retail sales and building approvals.
• The EUR/CHF has plunged to a new record low of 1.2934. Will the Swiss National Bank intervene this time as it has done on similar spike downs?
• One way to play this would be to predict that the EUR/CHF won’t revisit the record low again in the next 24 hours using a No Touch Trade. A No Touch trade predicting that the EUR/CHF won’t touch 1.2934 in the next day could return 367%. If already hit, try a level 20 pips below.
• Coming up today we have Canadian GDP at 13.30 a slight M/M rise to 0.2% is expected.
• Following this we have US CB consumer confidence at 15.00 and the release of the minutes from the last FOMC meeting at 19.00.

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Commentary by David Evans, BetOnMarkets.

The above should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument.

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