- The British pound has been a little bit choppy against the Swiss franc during trading on Friday, but that is not a huge surprise considering that most of Europe is either doing Boxing Day or something similar to it.
- With that in mind, the volume of the course is difficult to suggest as being healthy during the session. It is probably mainly people trying to settle business.
- In the United States, it is typical for traders are not bothered trading the day after Christmas, and with that being the case, I think you have a situation where it makes sense that we went sideways.
The question is, what are we looking at from a longer-term perspective? If we can break above the 1.07 level, I think that would be a very bullish sign. Keep in mind that you do get paid at the end of every day to own this pair, as the interest rate differential is pretty large and the Swiss National Bank is nowhere near tightening rates. In fact, they have recently suggested in the middle of November that they are watching the exchange rates of the Swiss franc very closely. They did not like how strong it had gotten.
Finding a Floor
In trading earlier this year, we had seen a lot of action between 1.0650 and 1.0675, and we are sitting on that. So, I think we are in the process of trying to find a floor here.
Top Regulated Brokers
The question is, will we end up with a rally or a breakdown? If we break below 1.0650, then we could drop to the 1.05 handle. If we break above the 1.07 handle, then I think we are going to try to kick off another leg higher, although you will be swimming upstream. Keep in mind, you get paid at the end of every day to do so.
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