- The Swiss franc is one of the most important values on Thursday.
- Data from the Eurozone and the US raise concerns about growth prospects.
- EUR/CHF is back close to parity with bearish pressure intact below 1.0150.
After moving laterally for four days, the EUR/CHF it broke lower falling to 1.0067, the lowest level since early March. The cross remains below 1.0100, poised to post the second lowest daily close since 2015.
A recovery above 1.0150 should ease downside pressure. To the downside, support levels could be seen at 1.0040, followed by the parity zone and then the February low at 0.9970.
Yields are down for the wrong reasons
Eurozone June PMIs surprised sharply to the downside in the services and manufacturing indices. In the region, the main manufacturing index stood at 52.0 against the market consensus of 53.8, while the services index fell from 54.8 to 51.9.
“June PMI data shows Europe teetering on the brink of recession. We now expect the Eurozone to enter a mild recession in 2022H2,” analysts at TD Securities wrote. They note that central banks, including the European Central Bank, are likely to continue with their plans for now, but expect their tone to become more cautious later in the year.
Expectations of a tightening of the European Central Bank have diminished after the negative economic reports. The German 10-year yield falls by more than 10% as it stands at 1.42% (on Monday it was at 1.80%). Even Italian yields are lower, with the 10-year at 3.48%, the lowest since June 9.
|Last Price Today||1.0109|
|Today’s Daily Change||-0.0049|
|Today’s Daily Change %||-0.48|
|Today’s Daily Opening||1.0158|
|20 Daily SMA||1.0311|
|50 Daily SMA||1,032|
|100 Daily SMA||1.0314|
|200 Daily SMA||1.0428|
|Previous Daily High||1.0189|
|Previous Daily Minimum||1.0132|
|Previous Maximum Weekly||1.0479|
|Previous Weekly Minimum||1.0098|
|Monthly Prior Maximum||1.0516|
|Previous Monthly Minimum||1.0228|
|Daily Fibonacci 38.2%||1.0154|
|Daily Fibonacci 61.8%||1.0167|
|Daily Pivot Point S1||1,013|
|Daily Pivot Point S2||1.0103|
|Daily Pivot Point S3||1.0074|
|Daily Pivot Point R1||1.0187|
|Daily Pivot Point R2||1.0216|
|Daily Pivot Point R3||1.0243|
Source: Fx Street