FX Trading

The EUR/CHF continues to move down towards an all-time low.

Two central bank meetings down this week with two more on the calendar.

Currencies have come back under pressure in Tuesday trade, with the Euro leading the declines on the back of news that some of the European banks may have under-reported on their exposures to sovereign debt and then accelerating on the shockingly bad German factory orders.

The euro has come back under pressure, and has broken below both the 10 and 20-day SMA’s. Meanwhile, German factory orders unexpectedly declined in July.

The Euro pared the advance from the previous week, with the exchange rate slipping to a low of 1.2736, and the major currencies could face increased volatility going into the North American trade as U.S. traders come back on-line following the holiday weekend.

Currencies have come back under pressure in early Tuesday trade, with the Euro initially leading the declines on the back of news that some of the European banks may have under-reported on their exposures to sovereign debt.

Will economic optimism from last week carry over into the coming holiday-shortened week? Regardless, the direction of markets will be extremely telling with regard to whether the latest move was merely an oversold bounce or the start of a new trend.