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Kiwi Rises as Risk Rebounds
The New Zealand Dollar has emerged as the strongest currency over the European morning session on Friday. The Kiwi has banked gains on the back of the broad recovery in risk sentiment on the back of an emergency funding deal announced yesterday within the US banking sector. A group of 11 US banks have agreed to deposit $30 billion into struggling First Republic Bank in a bid to prevent any further bank collapses. The news saw a swift move higher across risk assets, leading to better demand for the Kiwi on Friday.
CHF Under Pressure
CHF has fallen by the wayside a little in recent days. The improvement in risk appetite has seen reduced safe haven demand for the Franc as risk assets attract capital once again. Additionally, the SNB’s CHF 50 billion funding deal for Credit Suisse has also caused some uncertainty towards the Franc. With the retail market around short the pair, there is plenty of room for the current rally to extend further near-term.
Technical Views
NZDCHF
The pair is turning higher within the bear channel which has framed the decline from YTD highs. Price has recently broken above the .5755 level and with momentum studies bullish, the focus is on a continuation higher. The next big test will be the bear channel top and .5818 level resistance.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.