Mid-Day Report: Swissy Strengthens in Consolidation Markets
ActionForex | Dec 22, 2008 07:00PM ET
Markets remain steady after another round of poor data from US. Existing home sales dropped sharply by -8.6% in Nov, making another record low since record began in 1968. New home sales dropped -2.9% to 17 year low of 407k. House price index dropped -1.1% in Oct. Though, final reading of U of Michigan consumer sentiment was revised up to 60.1 in Dec. Q3 GDP growth was finalized at -0.5% while personal consumption growth was revised lower to -3.8%.
In the UK, the third quarter current account deficit came in at 7.7B pound, better than consensus of 11.9B pound but worse than the upwardly revised 6.4B pound in Q2. The UK’s Q3 GDP was revised down to -0.6% qoq as services sector contracted -0.5% on the quarter, the greatest decline in 18 years. Manufacturing output also plunged 1.4% over the quarter. The Eurozone reported October current deficit of 4.8B euro, slightly lower than the revised 4.2B euro in September.
Swiss Franc is so far the biggest winner today topping the top movers chart with GBP/CHF, USD/CHF, CHF/JPY and EUR/CHF. In particular, EUR/CHF has now taken out mentioned 1.5163 support which adds more credence to the case that rebound from 1.4315 has already completed at 1.5880. Further fall is now in favor to retest this low and Swissy may start to displaying stronger momentum in other crosses comparing to Euro crosses.
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