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Market Wire Update:
Ahead of RBA and Bank of Canada
The two red-flag releases of note are central bank related, with minutes from the RBA at 20:30 EDT on Monday, and the the rate decision from the BoC on Tuesday at 09:00 EDT. Both releases are likely to create some price action that may follow through if commodity prices on oil and gold also start to pull back off near-term highs at $80 and $1060 respectively.
Aussie and cad are the pairs that we will be looking for price action on, and nearer to the 20:30 EDT release from Australia we will issue updates.
Euro looks determined to move to test 1.5000, but with further calls from ECB officials in on Monday that the U.S. needs to back the strong-dollar policy that they publicly proclaim, it seems that there will be some kind of intervention by the speculators, the sovereign wealth funds, or the central banks who globally are suffering risk/asset ratio imbalances because of the bullish Usd.
The long side of EUR/CHF looks inviting after once again hitting the 1.5100 area, a point that the Swiss National Bank started growling to the market at, and a price point that has had some intervention-like price action over the past few months.
The value of EUR/CHF is the net percentage difference in the moves in EUR/USD and USD/CHF (1.4950 euro x 1.0140 swissy = 1.5160 EUR/CHF), and therefore a long USD/CHF play may once again be in order. If it goes, it tends to rip higher and not let traders in too easily. Therefore a long swissy order may be issued soon as a signal.