EUR CHF

A global bond sell-off extended its run, driven by Germany’s ambitious spending plans, which are poised to reshape the eurozone’s economic outlook and has already had a sizeable impact on the euro forecast, lifting pairs such as the EUR/USD and EUR/CHF. The focus is now turning to the upcoming rate decision from the European Central Bank, before attention shifts to US labour market data as we head to the business end of the week

With the market split on the SNB’s next move, all eyes are on Schlegel’s debut decision. Volatility is all but certain, especially with the European Central Bank’s rate cut call arriving soon after. Here’s what traders need to watch.

A couple of Fed speakers and US core PCE price index are among the macro factors traders will be watching this week. The EUR/CHF is a more interesting euro pair to watch, while the EUR/USD technical outlook hinges on the 200-day average.

Today we look at a cheeky long setup on gold with its double bottom pattern at support, and an interesting setup on EUR/CHF which could appeal to bearish swing traders.

With hawkish Fed members alongside weak data from Germany ahead of today's inflation report, we're looking at a potential swing trade short on EUR/USD.

The Swiss headline print was 3.3% YoY vs an expectation of 2.9% YoY

Technical break out points to more upside potential for EUR/CHF

..especially against currencies where the central bank is deemed to be slightly more dovish than the ECB

The SNB hiked rates by 75bps today. However, the inconspicuous comments by the central bank left EUR/CHF weary as to if there are more to come.

The PBOC lifted China’s equity markets and commodity FX pairs with another round of easing, aimed at supporting their flailing property market.

The SNB has already given warnings that it could take monetary policy action between meetings if necessary.