SNB Hildebrand comments and fear of intervention help USDCHF/EURCHF rebound
SNBs Hildebrand commented that the global economy was no longer in a free fall. However, he warned that the Swiss economy could be slower than other regions. Later some worries about possible intervention was enough to scare the pairs higher in Europe trade.
The USDCHF has had an down and up day. The high for the day was reached in the 1st hour of trading reaching 1.0896. From that level, the market, followed the market (i.e. selling dollars) and the move down took the pair toward the 200 hour MA. Both the 200 and 100 hour MA are moving sideways suggesting a neutral market. Yesterday in the NY the market did use the 100 hour moving average as support, however.
In the EURCHF, the action has been largely to the upside. In our evening commentary last night, we warned of the risk of intervention since the pair had moved below the midpoint of the the range from June 24th when the BIS/SNB intervention occurred. The market seemed to come to its senses and started to recover higher. There were no reports of intervention. However, there was some skittish trading that moved the market back higher during the European session. The catalyst was a move back above the 50% midpoint level at the 1.5195 (see EURCHF chart above)
The market is currently hanging around the 100 hour Moving Average at the 1.5226 level. The market has been above the level but has not been able to close above the level on an hourly basis. Watch the level today.
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