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USD/CHF Fell to 0.9500, Swiss Buying on Saudi Arabia Air Strikes

Posted by Chris Advincula on Mar 26, 2015 8:12:00 AM

EURCHF.3.26 resized 600

Chart: WorldWideMarkets Alpha Trader

The price action seen on this sharp downward move of both USDCHF and EURCHF precipiated mainly from swiss franc buying which immediately took place following the news that Saudi Arabia and its Gulf Arab allies had launched air strikes against the Iran backed Houthi rebels in Aden, South Yemen. 

Saudi Arabia's ambassador to the U.S., Adel al-Jubeir said "We will do whatever it takes in order to protect the legitimate goverment of Yemen from falling." in a news conference held in Washington D.C. The U.S. supports the action and provides logistical support.

The dollar fell once again compounded by the weaker than expected U.S. Durable Goods which fell for a sixth straight month in February and the dovish stance of the Fed where the likelihood of raising interest rates are seen at a later time. The dollar index fell 0.8% to 96.26.

Dollar swiss came off from 0.9600 to trade below 0.9500 and tested 0.9490 and was met with a quick profit taking to 0.9540. Euro-swiss on the other hand fell from 1.0542 to 1.0470.


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Chart: WorldWideMarkets Alpha Trader


Topics: Fed, USDCHF, EURCHF, forex trading, US Dollar, European Session, Saudi Arabia, Fundamental Analysis

 

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