Jan. 16: MARKET OVERVIEW
FXBAZOOKA.com - The main topic at the Forex market remains yesterday’s decision of the Swiss National Bank to abandon CHF cap versus EUR.
Asian shares dropped with US index futures, while Japanese and Australian government bond yields plunged to records as investors sought haven assets.
EUR/CHF is trading in the 1.02 area, down from 1.20 and after it hit 0.87 yesterday. USD/CHF is in the 0.8770 zone, up from the lows below 0.7300, but still about significantly below the levels around 1.02 at which it started the week.
EUR/USD is trading in the 1.1640 area after hitting 11-year low in the 1.1570 area yesterday. Traders think that the SNB was almost certain the European Central Bank would launch large-scale bond buying next week. USD/JPY tested 115.85, the lowest level since the middle of Dec.
Watch the US inflation data later today: