Forex Signals Brief for September 14th: Are the BOE and SNB About to Rock Markets?

G’day all!

It's a massive day for forex traders!

While markets have been slowly settling into their groove this week, it’s that time again as both the Bank of England (BOE) and the Swiss National Bank are set to release their stance on interest rates.

The BOE, in particular, interests me as we’ve seen a fair bit of action in the pound in the last week or so. If you remember we had an impressive Consumer Price Index (CPI) figure recently which rallied the pound right up to the recent highs. However, it couldn’t back it up and put in a less than impressive number.

Not to worry though as the momentum is well and truly back to the upside. I wouldn’t expect a change in interest rates, however, there does appear to be a more hawkish tone.

Let’s see what opportunities we can find for the day.

Top Economic Events Today

EUR – French CPI

The CPI for France is due for release at 6:45 GMT. Analysts are predicting no change from the previous month. CPI is a leading indicator of inflation, and a positive result will strengthen the case for an interest rate hike.

CHF – SNB Interest Rate Decision

The Swiss National Bank will release its decision on interest rates at 7:30 GMT. The prediction is for no change but look for some jawboning as they attempt to talk down the currency against the Euro.

EUR – Italian CPI

Italian CPI is due at 8:00 GMT, and analysts are suggesting that there will be no change from either the MoM or YoY figure.

GBP – BOE Interest Rate Decision

The BOE is set to release their latest decision on interest rates at 11:00 GMT. While the expectation is for no change in official rates, look for signs of a hawkish tone that could spark buying interest in the pound.

GBP/USD – Pound Set to Jump?

The pound has certainly been in play over the last few weeks as we’ve seen some big data coming out and strong upside momentum. It feels like traders just want to buy the pound, and it appears that onlookers, while not expecting a hike, are looking for a sign that one is just around the corner.

GBP/USD – 240 min Chart

Key Levels

GBP/USD – Trading Plan

I’m not looking to fight the momentum on this one. If everyone wants to be long with the pound then so be it. The best trade for me is to look for a good level in which to enter.

Assuming we get a positive sign coming out of the BOE, then I’m going to buy on dips below near term support at 1.1316. In a similar fashion to the CPI figure, a breakout is most certainly on the cards so look to get long on a break of the highs that is able to consolidate.

EUR/CHF – Are We Going to Get Jawboned?

Over the last few months, the CHF has depreciated against the EUR by around 5%. This would please the SNB greatly, and I’m sure they’re hoping for a little bit more.

I’m expecting a dovish tone coming out of today and that should see us weaken further against the Euro.

EUR/CHF – 240 min Chart

Key Levels

EUR/CHF – Trading Plan

I’m watching resistance at 1.1500 pretty closely. If we can get a spike through that level on the back of some dovish talk coming out of the SNB then that might be a good opportunity to look for another leg higher over the medium-term.

We have tested that level few times and failed, so I’m keen to see how it reacts.

Gold – Quick Trendline Bounce?

I’ve been keeping an eye out for good long entries in gold, and we have found our way back to what has been a pretty solid trendline. Gold has really sold off this week after all the fears around North Korea have fallen to the wayside. Nevertheless, this might be a good opportunity for those with a long bias.

Gold – 240 min Chart

It feels like every day at the moment is a big one in forex markets. So let’s ride the news while the going is good! Have a great trading day!