EUR/CHF Testing Most Important Level in Currency Markets - US Market Open

EUR, CHF, Oil Analysis & News

• Eurozone PMI Plunges to a Record Low

• EUR/CHF Testing SNBs Unofficial Peg

• Oil Pushing Higher However, Storage Constraints Persist

EUR: Flash Eurozone PMIs cratered in April with the composite figure plunging to 13.5 (Expected 25.7) , marking the lowest reading on record where the services sector felt the largest impact (11.7). As such, this provides further confirmation that the Euro Area will see a sharp recession. In reaction to the dismal PMIs reports, the Euro came under pressure, breaking below 1.08 against the greenback to trade at fresh one month lows. Looking ahead, eyes are on the EU summit and whether the ministers can agree a fiscal response.

CHF: Yesterday, we noted that given the current macro-environment, risks to EUR/CHF is skewed to the downside. As such, with the SNB seemingly slowing down their huge intervention in the cross, eyes are firmly fixed on what is arguably the most important level in in FX right now at 1.05.

Oil: Another day respite for crude oil prices with WTI up circa 15%, while Brent crude futures break above $20/bbl. Eyes on geopolitical risks as noise begins to emanate from US/Iran tensions.