EUR/CHF Fundamental Analysis Jan. 19, 2012, Forecast
Economic Events:
09:00 EUR ECB Monthly Report
The European Central Bank’s (ECB) monthly report contains the statistical data that policymakers evaluate when setting interest rates. The report also provides detailed analysis of current and future economic conditions from the bank’s perspective.
Analysis and Recommendations:
Support and resistance levels S: 1.2033 1.205 1.2077
R: 1.2121 1.2138 1.2165
EUR/CHF is trading at 1.2096 This pair is a non story, nothing much happening and too much risk in either direction to trade the pair. Its hands off until a story unfolds. The pair is currently trading at 1.2096 just about even to the open today. It seems that the ZEW report positive news has offset against the IMF story and the pair has remained as it was yesterday
Fact or fiction, dreams or reality, rumors or news, which ever this is, it is the driving forces in the currency markets this afternoon. The International Monetary Fund (IMF) is planning to expand its lending capacity to $1 trillion from the current $385 billion to protect the global economy from the negative consequences of the European debt crisis, according to an official at a Group of 20 nations.
The question is will they be able to find contributions to do so, and how would these contributions be limited to the EU. The IMF charter requires assistance to all countries. How would the US veto power work in this instance? Today’s report contains no facts just a fact that a discussion will be held.
The big story unfolding is in Greece where Prime Minister Lucas Papademos said he would consider raising legislation to force a private-sector haircut on the debt if a deal can’t be reached voluntarily. Greek talks remained stalled as it is becoming more and more obvious that Greece will sooner or later default regardless of the negotiations and this temporary solution.
The european currency was propped up when Reuters reported that an analyst at Fitch said the agency did not expect Italy to default.
Originally posted here
