5 Sep 2013
GBP/CHF on the upper level ahead of BoE, ECB and G-20
FXstreet.com (Athens)- The GBP/CHF is trading upwards for a fourth consecutive day, ahead of crucial meetings of central banks and G-20 conference.
The G20 Summit begins today in Russia. On the economic front focus will be on the EM crisis and the urge for gradual withdrawal of stimulus in developed markets. But the market is not only dominated by the G20 Summit today, as there is also ECB and BoE minutes. Regarding ECB’s meeting, traders would be actually interested in any potential deviation from the current line of expectations, and that is a particularly low probability. Regarding BoE, TDsecurities, Rates, FX & Commodities Research suggest that “It’s not only unclear what the BoE will say, but if it will say anything at all as it’s uncertain whether or not we get a statement. Our suspicion is that in either case the markets will take a hawkish interpretation; no statement means that the BoE did not take the chance to talk down higher rates, and any statement is unlikely to push back as hard as the BoE did in July with the “unwarranted” talk, at least judging from Carney’s softer stance in his 28 Aug speech”. Last but not least, while these meetings should provoke swift price action, all eyes are truly on the US NFP report for August, due this Friday.
Technical outlook on GBP/CHF
At the time of writing, the GBP/CHF is trading nearly 1.4659, up 0.32%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support S3:1.4600 S2: 1.4560 S3: 1.4518 while resistance can be found at R1: 1.4677 R2:1.4718 R3: 1.4750
The G20 Summit begins today in Russia. On the economic front focus will be on the EM crisis and the urge for gradual withdrawal of stimulus in developed markets. But the market is not only dominated by the G20 Summit today, as there is also ECB and BoE minutes. Regarding ECB’s meeting, traders would be actually interested in any potential deviation from the current line of expectations, and that is a particularly low probability. Regarding BoE, TDsecurities, Rates, FX & Commodities Research suggest that “It’s not only unclear what the BoE will say, but if it will say anything at all as it’s uncertain whether or not we get a statement. Our suspicion is that in either case the markets will take a hawkish interpretation; no statement means that the BoE did not take the chance to talk down higher rates, and any statement is unlikely to push back as hard as the BoE did in July with the “unwarranted” talk, at least judging from Carney’s softer stance in his 28 Aug speech”. Last but not least, while these meetings should provoke swift price action, all eyes are truly on the US NFP report for August, due this Friday.
Technical outlook on GBP/CHF
At the time of writing, the GBP/CHF is trading nearly 1.4659, up 0.32%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support S3:1.4600 S2: 1.4560 S3: 1.4518 while resistance can be found at R1: 1.4677 R2:1.4718 R3: 1.4750