European trading saw USD/CHF consolidate the break below 1.2400 after the combination of overnight Hildebrand & Zhou comments. Looking ahead, the US unit is expected to stay on the defensive into the weekend with the US Federal Holiday for Veterans Day minimizing event-risk into the North American session.
Dealers focus on the Bernanke comments at the ECB banking conference at 13:45 GMT but with the PBOC's Zhou also attending the Fed Chairman might find himself outgunned as the mere fear of diversification out of the US unit continues to drive the global markets. Elsewhere, the Franc rally has even managed to outpace that of the Euro and as a result EUR/CHF has been sold back to support into 1.5920.
Yesterday a notable German claimed that any break below this level would take the focus away from 1.6000 option barriers so this level is being reinforced by bulls, with the same German spotted buying. Bids are seen trailing to 1.5915 with an intraday low at 1.5918 hit thus far while bears talk of stops below 1.5915 being targeted. Better sized stops sub-1.5895.
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