UWCFX TRADE IDEA EURCHF

23 NOVEMBER 2012: GOOD WEEK FOR ASIAN SHARES AND EURO


Arne Treholt Vice-President of Business Development and Investments


Stock indexes continued to rise Friday morning as Asian shares were on course for a weekly gain of more than 2 percent. The Asia Pacific MSCI rose 0,4 percent and reached the highest level seen in two months after manufacturing surveys from China and the United States raised hopes for an improving global growth outlook. Japan and US were closed due to public holidays and Thanksgiving.

EURO/USD is trading at 1.2887 with the Euro enjoying a one percent lift since last Friday’s close. This in spite of yesterday’s data pointing to the Euro zone sliding into its deepest recession since 2009. The Euro has, however, been helped by optimism that a funding deal for Greece will ultimately be found when euro finance ministers meet in Brussels on Monday.

USD/JPY eased 0,1 percent to 82,39 pulling back from Thursday’s high of 82.84 which is the dollar’s strongest level since early April. The dollar has gained 3,7 percent versus yen over the last two weeks. The yen has been weakened on expectations that the Bank of Japan shall implement more drastic monetary stimulus.

Commodity markets were quiet with oil, copper and precious metals staying course to end the week higher than they started. Brent crude is trading at USD 110, 25 and Gold is flat around 1730. Last day’s markets have been subdued by Thanksgiving and enters a new week once again with major focus on the debt crisis in Europe. While a lot of ink has been spilled on the US fiscal cliff the biggest challenge for the global economy rests with the euro zone. 

EURCHF 10:54 EUR/CHF intraday: bullish bias above 1.203. Pivot: 1.203 Our preference: Long positions above 1.203 with targets @ 1.2055 & 1.2065 in extension. Alternative scenario: Below 1.203 look for further downside with 1.202 & 1.201 as targets. Comment: a support base at 1.203 has formed and has allowed for a temporary stabilisation. Key levels 1.2075 1.2065 1.2055 1.2051 last 1.203 1.202 1.201

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