USD/CHF has spent the day slogging its way back up from its lowest levels in over a month, opening NY at 1.2385, dropping to 1.2365 in early US trading, as leveraged accounts pushed the envelope, and bottomed as European interbank bowed out. SNB Governor Roth threw the cat amongst the pigeons later in the day, commenting that the SNB'S primary focus remains on fighting inflation, somewhat contradictory to Hildebrand's comments yesterday, and helping the buck close atop 1.2400 again at 1.2410 (the high).
Unwinding shorts was the name of the game, after what had been a pretty easy FX play for US traders. Hildebrand's hawkish comments after the European close yesterday, followed by Chinese reserve diversification talk gave US accounts an easy play, Europe closed, Asian markets not yet open, and no US data releases. Swissy led the charge, hit 1.2350, and left just one question - when to take profit?
EUR/CHF emulated USD/CHF dropped 60pts from yesterday, opened at 1.5935, bottomed at 1.5915 and closed at 1.5940. GBP/CHF traded sideways, closing at 2.3710 up 5pts, and CHF/JPY opened at 94.90, touched 94.74, and closed 94.85.
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