Armageddon on markets as Swiss franc soars

meeting?
After a poor jobs report, investors have shifted their attention to the ECB meeting.
The markets need co-ordination from the central banks and political leaders as they look at how the ECB will respond on rates outlook and growth forecast issues.

Volatility on the markets has been difficult to navigate especially in the month of August thus there is need for a faster correction and rational market moves in September.
The dollar fell against the Swiss franc on a weak US job data prompting investors to shift attention to the ECB rate decision after US jobs figures stagnated in August.
Gold and Swiss franc got a boost from “risk off trade”, the markets are turning more cautious and putting on risk off trades thus helping gold and the franc pushing investors to put their trust in the two to hedge against financial losses.

The franc posted gains against the euro and commodity currencies like the Aussie dollar, New Zealand dollar, Canadian dollar and the rand dropped boosting haven demand.
The euro fell on concern that Europe’s debt crisis is worsening. Dollar slumped to 77,12 cents against the franc, fell to 76,88 yen from 76,93. The euro slid to 1,1201 franc, fell to 109,11 against the yen and was down to 1,4205 against the dollar.

The euro-dollar pair is going through fluctuations due to uncertainties as we can see it is still digesting data in and around Europe.
The dollar index, which tracks the greenback against the currencies of six major trading partners including the euro and the yen, rose to 74,706 from 74,479. The outlook in the euro has been bad there’s has been no good news coming out of the eurozone for the past six months let’s hope this week’s meeting brings some confidence in the eurozone.

In Switzerland the Swiss government is worried about a strong Swiss franc which they intend to sell their currency to influence prices if the Swiss franc reached parity.
The Bank of Japan is meeting this week as it tries to deploy tools that will weaken the yen as a stronger yen is a threat to exporter’s profits.
The dollar-yen pair remains stuck between ranges of 76,95 and 76,81 seeing more buying of the yen and selling of the dollar.

If the Bank of Japan fails to intervene further we could see companies in Japan using a strong yen to buy companies elsewhere in emerging Asia like South Korea, Thailand among others.
The Swiss franc and the yen tend to strengthen during periods of financial turmoil.
In England the Bank of England is also meeting to fight a stubborn inflation and bring back positive numbers to help stimulate growth.

The Bank of England could be forced to line up a stimulus package in the form of quantitative easing as growth has remained stagnate.
The pound on its own has been a free rider getting support from a weak dollar and euro, but outlook for the pound has been pretty bad as well.

Negative numbers from the retail figures could be the driver behind quantitative easing within the UK.
Margins in trades in the UK have been thin all because of a slowdown in the UK economy.
The Aussie dollar snapped a five-day rally against its US counterparts as demand for high-yielding assets fell after a government report showed US jobs unexpectedly stagnated.