ForexLive Asia FX news wrap: CHF… do not adjust your monitors

Forex news for Asia trading Monday 11 February 2019


USD/CHF had a surge in early trade here in Asia. Monday morning is the lowest liquidity time of the forex week and today it saw a big run down for the Swiss franc with only Australia and New Zealand trading. Stop losses (from around 1.0030) to buy USD/CHF saw that pair run as high to circa 1.0100 (some brokers will report higher, some lower, a fact of life in forex, especially at this time of the week). CHF crosses were similarly hit.

No sooner than the highs were hit in USD/CHF than the pair began to deflate, stopping for a few minutes 1.0050/60 and thereabouts before dropping back to where we began under 1. Yeah, do not adjust your monitor.

Since then the USD has seen a little strength, pushing USD/CHF back over 1.

I cannot emphasise enough how diabolically thin liquidity can be in early Asia on Monday. I warn of it every week in my opening post each Monday. Forewarned is forearmed.

As it happened:

  1. USD/CHF on the move
  2. More on the big drop for the CHF
  3. USD/CHF completely reverses its up move (did I mention this is an illiquid time?)

Chart from the time of the surge and drop: 


Elsewhere it wasn’t much of a session. NZD/USD gained 30 or so points at its highs but has subsided to be around the middle of its session range as I post. AUD/USD, too, a little better on the day but mid-range as of now (small ranges for both of these).

EUR/USD, barely changed net for the day, cable a touch lower.

USD/JPY has plodded its way up towards 110 (just under as I post). USD/CAD up a touch also. Gold lost a few dollars to open the week.

News flow was light indeed. The economic calendar for releases relevant to the majors was empty.

China reopened after the week-long holiday. The PBOC cut the CNY (against the USD, i.e. higher USD/CNY) rate. And there was plenty of catch up too for commodities in China, notably:

  • Dalian iron-ore futures +8% to hit their daily limit
  • Shanghai steel-rebar futures+3.2%

Still to come:

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