Forex Market News
49% of the Swiss population came out and 77% of them rejected the gold initiative. This gives the SNB more room to move and be able to defend their currency, in particular the cap/floor of EURCHF 1.20 which they have had since Sep 2011. Gold and the Swissy opened this morning weaker on the news, which is the way they wanted it and as it should be. Silly idea in the first place.
Have opened stronger across the board and oil is continuing to tumble, under $65 now. Other commodities are falling with it. This in turn is driving down commodity currencies such as the Aussie, Kiwi and Loonie.
Lots of PMI data out from around the globe, but the big one everyone will be watching is China. Whilst I doubt the recent rate cut in China will be showing up yet in the manufacturing sector, the reading has been declining towards 50 for some months now. Under 50 and all hell will break lose on the Aussie.
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