FXstreet.com (Barcelona) - U.S. stock markets are going through gains for third day in a row, as G.E. credit rate downgrade will not affect businesses, The Swiss National Bank has sent the CHF underwater and U.S. consumption did not decline as much as expected.
U.S. markets are rallying for third consecutive day as General Electrics rose 8.5% despite credit rating downgrade at Standard & Poor's. Dow Jones and S&P Indexes have risen above 1.0% while the Nasdaq Index gains 0.62% after two hours of trading.
The Swiss national Bank has cut rates by 0.25% to Libor target range from 0 to 0.75%, sending the CHF to its lowest levels in months against most majors. On the macroeconomic front, U.S. retail sales have dropped 0.1% instead of the 0.5% drop expected, and the Dollar has celebrated the news with broad based rallies despite a larger than expected increase in jobless claims.
Swiss Frank slumps, Dollar rises across the Board
The Swiss rank has dropped massively against most majors after the SNB interest rate cut; USD/CHF rocketed about 360 pips reaching 1.1969; 3-month high; EUR/CHF has risen about 325 pips to 1.5300, and the GBP/CHF has rallied more than 400 pips reaching 1.6460 so far.
The USD has been the winner of the session fuelled by better than expected retail sales; USD/JPY has pared losses posted during today's Assian session and has bounced from two weeks low at 95.67 reaching past 97.90 (Mar 10 low.) on its way towards intra-week high at 99.20.
The EUR/USD has declined from 1.2844 to test resistance level at 1.2735, to bounce up afterwards; the Euro has entered in a channel between 1.2735 and 1.2875; both levels seem too strong for the pair, at the moment.
GBP/USD has gone back and forth from 1.3840 to 1.3700, to recover and, at the moment is back testing 1.3840 again.