Thursday July 13, 2006 - 10:45:17 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Political stresses support franc
Political stresses underpin franc
There will be increased franc demand if emerging-market stresses increase again or there are sustained falls in global equity prices and the currency will also secure backing from geo-political stresses. Short-term support is realistic close to 1.2350 against the dollar.
The Swiss currency was unable to break 1.2250 against the dollar and weakened to lows beyond 1.2360 after the US trade data. The franc was little changed at 1.5660 against the Euro on Wednesday, but the Swiss currency strengthened to 1.5635 in early Europe on Thursday and also pushed back to 1.23 against the dollar as franc demand increased.
Reduced structural dollar fears will tend to lessen immediate demand for the Swiss currency, but the overall tightening of global liquidity will still represent an important market risk and will tend to underpin the Swiss currency. The franc will also tend to gain support from increased Middle East tensions with the small possibility of strong franc gains if political and economic risks increase in tandem.
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."