The euro/dollar forex pair attempted to rally after the poor US Non-Farm Employment Change data. Alas, forex speculators were in risk-on mode and plus, there were renewed fears that the fiscal situation of Greece is really getting out of hand. EUR/USD spiked down from 1.4288 to 4183 yesterday in late American forex trading.
The Swiss National Bank is right now intervening in the forex markets to stop the rise of the Swiss franc, saying the strength of the currency was “threatening the development of the economy and increasing the downside risks to price stability in Switzerland.”
EUR/CHF gained about 250 pips after the start of the intervention.
Here’s the hourly picture in EUR/CHF:
Yesterday, Moody’s, the rating agency with “stellar” record for predicting the Lehman Brothers’ demise, said it placed the US government’s Aaa bond rating on review for a possible downgrade owing to “a small but rising risk” of a some sort of a default, as politicians keep bickering about raising the US debt ceiling.
After yesterday’s slide in the EUR/USD forex pair mainly due to Portugal’s rating cut, we should be aware of the regular data releases that might move the euro/dollar market one way or another:
11:00am German Factory Orders m/m
15:00am US ISM Non-Manufacturing PMI (Purchasing Managers’ Index)
All times London.
