(Tuesday, 01 July 2008 04:15:31 GMT)
A failure of follow-through on the rumors of a surprise SNB rate increase coupled with uncertainty over the fate of the US economy as the Fed shifts to neutral amid record-setting weakness in the US labor market has seen USDCHF settle into a range.
Trading Tip – Labor market statistics have gained particular prominence as last month’s US unemployment rate saw its largest gain in 22 years. Consumer price gains for Switzerland may also increase volatility as the SNB has been rumored to issue a one-off rate increase. Traders may want to exert particular caution around these releases, with the most conservative opting to remove pending entries until the event risk has passed. In addition to a stop loss, we will look to control risk further by removing any unfilled orders by the end of the week or should spot close above 1.0453.
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