European Stocks Rally on Chinese Growth and Mining Merger Speculation 
US Gas Market Poised for Supercycle: Bernstein Analysts 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
China's Refining Industry Faces Major Shakeup Amid Challenges 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Urban studies: Doing research when every city is different 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
The EURCHF exchange rate has already eased back below the 1.13 mark and has therefore returned into areas that are likely to begin causing the Swiss National Bank (SNB) discomfort. SNB is scheduled for its monetary policy meeting next week.
Technically, the pair has tumbled below 1.1376 (i.e. 21-EMAs) and for now, on the verge of retracing 50% Fibonacci levels with intensified bearish momentum.
The Swiss central bank had seemed much more relaxed as regards the exchange rate when it climbed from levels around 1.10 to above 1.14 last year. Even though inflation in Switzerland is positive again, core inflation has remained at only 0.5% since the start of the year, which is anything but comfortable.
Driving forces of EURCHF:
1) Protracted EM stress and deleveraging of FX-funding.
2) Systemic Euro area stress on aggressive Italian fiscal easing.
3) The ECB delays rate hikes into 2020.
OTC updates and trade recommendations: (Short in EURCHF at 1.1392, spot reference: 1.1295 levels)
EURCHF risk reversal numbers and positively skewed of implied volatilities of 1-3m tenors signify the bearish risks to prevail further.
25-delta risk reversals indicate the difference in volatility, and therefore price, between puts and calls on the most liquid out-of-the-money (OTM) options quoted on the OTC market. Negative bids indicate puts are more expensive than calls (downside protection is relatively more expensive).
Accordingly, we advocate 2m (1%) in the money -0.79 delta put options, the rationale for choosing such derivative instrument is that the in the money put with a strong delta would move in tandem with the underlying downward moves.
Currency Strength Index: FxWirePro's hourly EUR spot index has shown 102 (which is bullish), while hourly CHF spot index was at 76 (bullish), while articulating at 09:32 GMT. For more details on the index, please refer below weblink:
