Wednesday June 29, 2005 - 10:02:53 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Dollar challenges Swiss franc
The US dollar strengthened during Tuesday and pushed to highs above 1.28 in early Europe on Wednesday with a challenge on 1.2850 before a retreat back to 1.2820. There is likely to be a tough short-term battle close to the 1.2850 level against the US dollar as the markets look to break dollar resistance levels. The franc weakened slightly against the Euro to near 1.5450.
Yield considerations will tend to dominate in the short term and the low level Swiss rates will leave the currency vulnerable to selling pressure. If relatively narrow ranges prevail, the markets may also be more confident in selling the Swiss currency.
The KOF indicator reported a drop to 0.46 for June compared with a downwardly-revised 0.49 for May which will dampen confidence over the Swiss economy.
There are, however, considerable doubts over the global economic trends and this will maintain the risk of a sudden franc correction on position adjustment if global growth doubts intensify or risk aversion increases.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."