Swiss National Bank Watching for Excessive Speculation

Uncertainty over the release of tomorrow’s bank stress test results and Friday’s employment report could trigger volatility but trading could be limited if the Swiss National Bank intervenes to prevent excessive speculation

The USD CHF saw uncharacteristic volatile trading on Wednesday. Early in the New York trading session, traders were selling Swiss Franc’s because of concerns over the U.S. banking system. Later in the session the Swiss Franc gained on the better than expected ADP employment report.

Trading should continue to be volatile as traders express uncertainty over the release of tomorrow’s bank stress test results and Friday’s U.S. Unemployment Report.

Thin conditions are also contributing to the fluctuations as some of the larger traders have decided to stand aside until the U.S. economic picture becomes clearer. Late in the trading session word leaked out that the Swiss National Bank is eyeing appreciation of its currency. This could mean another round of intervention is eminent.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More