The Norges Bank looks set to cut interest rates at its meeting today and there’s an outside chance that tomorrow the Swiss National Bank will adjust its floor on euro-Swiss franc higher from SFr1.20. Deflationary indicators have begun to shine through with, CPI figures dipping into negative territory for November. It’s worth noting that the Swiss National Bank only takes action when macro indicators show weakness – this is exactly what happened prior to their previous intervention bouts in 2009 and earlier this year (negative CPI and falling share prices). On euro-Swiss franc Alpari quotes SFr1.2353-SFr1.2355.
Euro took a nosedive against sterling on Monday, as the £0.85 level finally gave up its support. This significant breakdown now opens up the way for further southward movements for the single currency. This £0.85 level will likely act as resistance now and one could expect any rallies to be subject to a sell off. The £0.8450 should act as support in the near term, but any further weakness along with continuing uncertainty regarding Eurozone debt solutions make it possible that the pair will now re-target the 2011 lows around £0.8360. CMC Markets offers a spread on euro-sterling of £0.84651-£0.8466.
Australian dollar-dollar has broken through a near-term downward trending resistance level around the $1.0100, after looking like it might head back below parity. A little bit of risk appetite has returned to the Aussie dollar following Monday’s big sell off. Bulls will be looking for a return to the $1.0225 level and beyond. Capital Spreads quotes $1.0115-$1.0116 for Australian dollar-dollar.