Forex: USD/CHF dives on first day of 2013
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USD/CHF
FXstreet.com (Barcelona) - Risk sentiment has spread on financial markets as US politicians came to an agreement on the tax breaks bill to avert the so called "fiscal cliff". It's been reported that this deal will add $4 trillion to the US deficit over the next 10 years.
Over the House of Representatives, 172 Democrats and 85 Republicans voted in favor, while 16 Democrats and 151 Republicans voted against (8 abstentions).
As it fell across the board, the USDCHF lost the 0.9100 handle and printed its low at 0.9079. At the moment of writing, it seems to have bounced back to the psychological level ahead of the Markit manufacturing PMI releases all over Europe and the German CPI report.
"Failure circa 0.9250 will leave the market weighing on the downside towards the 0.9043 May low and the 0.8931 2012 low", wrote Commerzbank analyst Karen Jones, expecting that and the double Fibonacci retracement at 0.8862/68 to see the market attempt to stabilise.
Over the House of Representatives, 172 Democrats and 85 Republicans voted in favor, while 16 Democrats and 151 Republicans voted against (8 abstentions).
As it fell across the board, the USDCHF lost the 0.9100 handle and printed its low at 0.9079. At the moment of writing, it seems to have bounced back to the psychological level ahead of the Markit manufacturing PMI releases all over Europe and the German CPI report.
"Failure circa 0.9250 will leave the market weighing on the downside towards the 0.9043 May low and the 0.8931 2012 low", wrote Commerzbank analyst Karen Jones, expecting that and the double Fibonacci retracement at 0.8862/68 to see the market attempt to stabilise.
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