USD CHF Posts Daily Closing Price Bottom; Likely Position Squaring ahead of NFP Report
Profit-taking and position squaring ahead of Friday’s U.S. Non-Farm Payrolls Report helped form a daily closing price reversal bottom in the USD CHF on Thursday.
This could be something minor or it could be the start of an overdue correction. It all depends on how traders read Friday’s U.S. employment report.
Increased Risk Appetite; Position Squaring Boost Equities
U.S. equities are called higher this morning after posting a strong gain on Wednesday and a follow-thorough rally last night. The stable Euro is contributing to the rally along with position squaring ahead of Friday’s U.S. Employment Report. In addition, traders seem to be getting a little more optimistic that the global economic recovery is getting back on track based on fairly decent U.S.
The U.S. Dollar is down sharply overnight against most major currencies on end-of-the-year position squaring. Although the Dollar is about to close lower for the year versus most currencies, this month it has shown signs of bottoming because of the improving economy and the possibility of an interest rate hike by the Fed earlier than previously estimated.