- The Euro rallied a bit during the course of the trading session on Friday, even breaking above the 0.9650 level.
- But we are now trying to pull back a bit. It'll be interesting to see how this plays out because I don't like the Swiss franc at all right now, and I believe that we are trying to do everything we can to get away from the Swiss franc and multiple currencies.
- This is one that's interesting for me to watch as far as markets go, because it is a risk barometer.
Right now, it looks like we could go looking at the 0.9775 level, but short-term pullbacks are most likely going to be occurring in the short term. And I do think that a lot of traders will be looking at this through the prism of whether or not those end up being value plays. After all, the Swiss franc is offering very little in the way of interest rates, but at the same time, the bond markets in the European Union, especially Germany, are seeing yields crack much higher. That means that you get paid to hold this pair and that's part of what you're seeing here.
Top Regulated Brokers
Momentum to Continue?
Whether or not we can continue the momentum remains to be seen. It is worth noting that the euro looks a little tired against the U S dollar. So that might be the catalyst for a pullback here, but I'd have to believe that as long as we can stay above the 0.95 level, you have to be looking at this through a prism of a buy on the dips type of market. After all, who wants to pay the swap at the end of every day? If you can avoid it, especially when you see this Swiss Franc, getting smoked against multiple currencies at the same time.
Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.