EUR/CHF Fundamental Analysis January 22, 2015 – Forecast

Analysis and Recommendations:

The EUR/CHF fell below the 1.00 level to trade at 0.9999 as the Swiss franc continued to find its footing after the SNB decision last week. The Swissy is trying to discover its correct trading range after being held in check by the Swiss Bank floor.  There can be little doubt that Mr Draghi and his colleagues are acutely aware of the risks in this regard. However, whether he can exceed expectations is unclear. As trading sentiment looks to be particularly nervous at present and probably too dependent on a continuing stream of good news from central banks, Thursday has the potential to be very important for markets as well as the broader economic outlook for the Eurozone.

The Swiss franc soared as much as 40% in chaotic trade after the Swiss Central Bank (SNB) abandoned the cap on the currency’s value against the euro. Traders dubbed the move as “Francogeddon”, after it caused chaos on financial markets when the SNB abandoned the policy without warning on Thursday.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, January 22^nd

Government Bond Auctions

Date Time        Country             Auction

Jan 21               Norway             Holds bond auction

Jan 21               Germany           Eur 5bn Apr 2020 Bobl

Jan 21               Sweden             Details bond auction on 28 Jan

Jan 22               France               Eur 7.5-8.5bn 1.75% Feb 2017 BTAN     

Jan 22               Sweden             Sek 0.5bn 0.25% Jun 2022,

Jan 22               France               Eur 1-1.5bn 0.25% Jul 2018 & 0.25% Jul 2024 OATei

Jan 22               US                    Announces 2-yr FRN, plus 2/5/7 yr. Notes

Jan 22               Italy                  Announces details of CTZ/BTPei on 27 Jan

Jan 22               US                    Auctions Usd 15bn 10-yr TIPS

Jan 26               Germany           Eur 1.5bn 12M (Jan 2016) Bubills

Jan 26               Italy                  Announces details of BTP/CCTeu on 29 Jan

Jan 27              Holland                         Eur 1-2bn 2.75% Jan 2047 DSL (re-opening)

Jan 27               Spain                3 & 9M T-bill auction

Jan 27               Italy                  Auctions CTZ/BTPei

Jan 27               US                    Auctions 2-yr FRN, plus 2-yr Notes