USD/CHF Fundamental Analysis January 20, 2015 – Forecast

Analysis and Recommendations:

The USD/CHF recovered 69 points as traders continue to digest the actions of the Swiss National bank and expectations from the ECB this week.  Today should be an easy day for this pair as US markets are closed for the Martin Luther King holiday. After last week’s excitement traders are sitting tight trying to get an idea of the proper market price for the currency.  The decision by the Swiss National Bank, after three years of holding down the franc’s value, was met with indignation by many small-to-mid size companies which now face lower revenue from exports.

Unlike bigger multinationals based in the country, smaller companies tend to produce a higher proportion of their goods in Switzerland, meaning they lack the spread of costs in other currencies that could mitigate the franc’s surge.

The SNB said its limit on the value of the franc had been an exceptional and temporary measure that had protected the economy from serious harm, and although the franc was still high, the overvaluation has decreased as a whole since the limit on its value was introduced.

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:

Today is the Martin Luther King Holiday in the US

 

Upcoming Economic Events that you should be monitoring:

Tuesday, January 20^th

Government Bond Auctions

Date      Country               Auction

Jan 20 Spain            6 & 12M T-bill auction

Jan 20 UK                Auctions conventional Gilt

Jan 21 Germany       EUR 5bn Apr 2020 Bobl

Jan 21 Norway         Holds bond auction

Jan 21 Sweden         Details bond auction on 28 Jan

Jan 22 France           Auctions BTANs

Jan 22 France           Auctions

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 10-yr TIPS