Amid the milder CHF weakness witnessed in Europe this morning USD/CHF probed to a fresh 7-Dayhigh at 1.2577. Although the Euro managed to attract much of the morning attention the Franc continues to be sold as bulls eye a steadier return. Into North American trading and a run at 1.2600 is the ultimate short-term goal but with EUR/USD looking underpinned the cross will have to attract considerable buying before USD/CHF is pushed further.
Dealers note the Fed comments later in the day (Moskow at 13:45 GMT & Pianalto at 23:30 GMT) as a potential source for further US unit strength. Against the Euro the CHF depreciation continues with EUR/CHF matching the October 15th high at 1.5965 thus far in European trading.
Dealers note a EUR 500Mln 1.5950 strike due to expire intraday (NY cut 15:00 GMT) that could help limit any further Franc weakness later in the day but with the option barriers at 1.6000 still the bull target in the long-term the topside will remain in focus and dips to 1.5950 should remain supported. Above the September 15th high at 1.5978 should help cap with talk also of 1.5970/75 option structures.
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