IN WHAT has been a year of choppy and volatile trading for many asset classes, there is one trend that has persisted throughout the uncertainty. Every month this year has seen fresh all time lows set by dollar-Swiss franc as investors continue to favour the Swissie as a safe haven. The dollar has declined by 17 per cent this year – a 1,600 point slide. IG Index quotes SFr0.7720-SFr0.7722.
With an end – albeit only temporary – to the US debt drama in sight, the dollar stabilised earlier in the week and also made gains against the Canadian dollar after the Canadian economy posted negative GDP figures. Dollar-Canadian dollar has been trading in an upward range for the past week and spread betters have continued to buy the dollar with a view of the rise continuing. The big question is: Will the greenback return to parity? Spreadex has a dollar-Canadian dollar at Ca$0.9560-Ca$0.9564.
The dollar has bounced back with the authorities reaching a deal on the US debt ceiling. The euro has lost nearly 300 pips so far in the space of two days, so is trending downwards, approaching its next support level at $1.4150, so traders should be cautious here. Capital Spreads quotes euro-dollar at $1.4174-$1.4175.
The Aussie has suffered somewhat since equity markets started to take a turn for the worse, but the overall uptrend remains intact.
Some good economic data is required though for Australian dollar-dollar to retest its highs. Capital Spreads quotes $1.0866-$1.0867 for Australian dollar-dollar.