USD/CHF opened in NY at 1.2195, slipped to 1.2175 at the low, then traded up to a high of 1.2295 after stronger than anticipated US economic data prompted a stop loss surge, largely driven by a drop in EUR/USD. Stops were triggered at 1.2240, 60, and 80 however overnight sell orders from European and Asian accounts held the topside, and the afternoon session quieted down ahead of the FOMC minutes, trading 75-95 before the report.
A slightly more dovish tone to the minutes, with a more ambivalent view from some members as to the greater risk to the economy, inflation or low growth, and heightened concerns for the softness in the US housing market catching the market's attention.
The close was 1.2255. EUR/CHF powered to new 6 3/4 year highs, registering 1.6173 at midday as USD/CHF stops were triggered by a sliding EUR/USD, profit taking in EUR/CHF and a rebound in EUR/USD brought the pair back down to close at 1.6137, little changed from opening indications. CHF/JPY offset the fall in EUR/CHF dropping from opening highs near 98.00 to close at 97.37 as USD/JPY closed at 119.35.
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