© Dukascopy Bank SA
"The turn in the rhetoric from the Fed, as well as the heightened expectations for greater accommodation coming from the ECB, has made the dollar really one of the best-performing assets so far in August. It's really on a tear, and I suspect that it has room to run."
- Tim Condon, ING (based on Bloomberg)
Pair's Outlook
Although at the very beginning of this week the bears seemed to be winning and were in a good position to throw the rate back some 60-80 pips, in the end USD/CHF did not need to come down to 0.91 in order to receive a bullish impetus. The currency pair has just gained a solid foothold above 0.9150 and it is therefore likely to try to reach 0.9250 next month. This scenario is supported by all but monthly technical studies.
Traders' Sentiment
The current distribution between the long and short positions is exactly the same as yesterday, when 57% of traders expected the U.S. Dollar to appreciate. As for the orders, 69% of them are to purchase the Buck against the Franc.
© Dukascopy Bank SA