| Intervention.... really? Posted: 10 Aug 2011 05:23 AM PDT I have stated several times that single intervention from a Central Bank is not enough to change a trend, and USD/JPY proved me right. We have just erased all gains set after past week intervention movement, with the pair now barely 20 pips above the all time low. And I'm expecting now further slides in the cross; check my short term report about it: http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/08/10/
The SNB reported past week that it has lost 10.8 billion francs (near, $13.5 billion) in the first half of the year due mainly to the recent surge in the Swiss currency."The appreciation of the Swiss franc against all major investment currencies resulted in substantial valuation losses," said the central bank in a statement. About 9.9 billion francs was lost on its foreign currency positions, as the US dollar depreciated by 9.6 percent, the yen by 8.9 percent and the euro by 2.4 percent against the Swiss currency over the first six months of the year. Cutting rates was neither the solution, as the pair lost more than 400 pips ever since, with a fresh record low set yesterday at 0.7065. 2010 losses due intervention, had been estimated in 21 billion francs. Up to this point, and inverted Fibonacci points for a 0.6500 area as next bearish target. And latest FOMC outcome is surely not helping.
Selling on pullbacks, continues to be the best market option these days.
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