Start your Binary Trading income NOW!!!

Sponsored by Nuffnang.com

Tuesday, December 19, 2006

Swiss Outlook (19th December 2006)

The Dollar bull run comes to an end and there are now real prospects for a late December retracement back towards the 1.20 level. Early Tuesday action has been dominated by M&A strength in Sterling, data strength in the EUR and a rhetoric weakened Yen.

This has led to a very mixed bag for the Franc, which has lost ground to the single currency but made significant gains vs the Dollar. There has been another factor supplying some direction for the Swiss unit. M&A news has drawn attention with New Zealand's Rank Group looking at a CHF 2.4 bln deal for Switzerland's SIG, topping a rival bid from Norway's Elopak by 14%. Countering this news were details of CHF 4.25 bln repurchase deal for 25% of Vodafone's SwissCom Mobile from Swisscom.

USD/CHF has the makings of a technical reversal with a 1.2268 spike high Monday, close back at the 1.2215 open and a strong bear move early this session. Lows so far of 1.2160 and scope to the double hourly lows of 1.2120 from last Friday's session. Only a break above this session's 1.2235 open will negate our bear view for the run into the turn.

No comments: