SNB fuels negative expectations for today’s US trading session – Sunshine Profits

FXStreet (Barcelona) - Paul Rejczak of Sunshine Profits, notes that expectations before the US trading opening are largely negative as investors react to the SNB’s decision to scrap its CHF floor.

Key Quotes

“Expectations before the opening of today’s trading session are negative, with index futures currently down 0.4-0.5%, as investors react to Swiss National Bank decision to remove its euro exchange cap.”

“The main European stock market indexes have lost 0.2-0.6% so far. Investors will now wait for some economic data announcements: Initial Claims, Producer Price Index, Empire Manufacturing number at 8:30 a.m., Philadelphia Fed at 10:00 a.m. The S&P 500 futures contract (CFD) fluctuates following yesterday’s move down. The nearest important resistance level remains at around 2,020. On the other hand, support level is at 1,980, marked by local low. There is no clear short-term direction.”

“Concluding, the broad stock market slightly extended its recent move down yesterday. However, there is still no clear short-term direction. For now, it looks like a volatile medium-term consolidation following last year’s October-November rally. We prefer to be out of the market, avoiding low risk/reward ratio trades.”