The Swiss player that officially upgraded their SNB forecasts for 2007 helped the Franc elicit support into European trading. The player is now calling for two hikes in H1, from 1x25bp move in H1 (Q1) previously. They look for a total of 50bps extra this year, with rates on hold in H2, promptly followed by another 25bp hike in Q1 2008.
USD/CHF eased back to 1.2400 into early European trading having printed 1.2449 in Asia. The failure surmount 1.2450 and subsequent talk of option related sales has produced speculation of 1.2450 option barriers but the Franc failed to break higher and trading has since consolidated the new 1.2400/50 comfort-zone. On the downside, stops are seen below 1.2400/10 bids with 1.2350 then seen as the next big downside level.
In the longer-term, on German suggests that a close above 1.2365/70 today will put the pair on course for a run at 1.2535/80 with other bulls claiming 1.2770 could be eyed. On the crosses, the news was little comfort to EUR/CHF bears as 1.6170/75 continues to be targeted. Offers into 1.6150 have capped thus far today.
No comments:
Post a Comment