A good early European session for the Swiss unit as a number of factors shake the forex market from its Monday lethargy. The Taliban in Afghanistan targeted the US Vice President in a suicide bomb attack on a US military base. The dollar was already looking vulnerable as the Iran issue brought fresh uncertainty and geopolitical risk.
The market and investment community had already absorbed the Greenspan "recession" chatter from Monday but the Dollar was still jittery first thing Tuesday. The carry trade issue also had a say in the morning's activity. The emerging markets took a hit and the Yen and Swissy found favour. From the Swiss domestic perspective the market is waiting for a speech from SNB's Thomas Jordan.
The central banker is due to talk from 17:30 GMT today. The market will again be looking for hints on the speed of the SNB"s tightening cycle. USD/CHF has fallen from 1.2305 to 1.2227 and remains heavy. EUR/CHF topped at 1.6212 in late Asia and recorded 1.6170 lows.
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