In European trading and downside follow-through was limited in the USD/CHF break below 1.2125 and spot soon bounced as 1.2110 bids emerged. Ahead of the North American open, the pair broke into the 1.22's with stops triggered in the break above 1.2205. These have fueled the run to the fresh intraday high at 1.2222 and the price is now looking to consolidate the break higher.
More sellers are seen into 1.2250 and 1.2260 but US data is now seen as the key driver for the price in the short-term. US Non-Manf. ISM data for February is set for release at 15:00 GMT. Economists have opted for a 57.2 consensus but with the risk skewed clear to the downside the Dollar may struggle come what may.
Following this, Poole is due to talk (16:00 GMT) on "inflation, financial stability and economic growth". Stops in [EUR/CHF] have been removed in the intraday drive lower and 1.5932 printed in European trading as the Franc was bought back on carry trade unwinding. Add to the mix the potential for an SNB hike on March 15th and the CHF should remain supported on dips.
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