The Franc never really took note of the comments from the Swiss Economy Minister that few in the mountain economy are worried over Franc weakness. Intraday and the CHF managed to elicit a modicum of support into European trading ahead of the re-opening of the local 2017 4.25% bond auction. The Federal Treasury sold CHF 665Mln according to the recent results but USD/CHF failed to break below the key 1.2155/60 support level.
Spot bounced off 1.2165 and local dealers cite EUR/CHF buying as "having impacted the Dollar pair". However, standing offers into the 1.2180's and 90's continue to stall the hopes of a run at the 1.2200 option barriers with the US unit generally seen in a consolidative mood ahead of the FOMC. EUR/CHF in contrast now looks capped by the 1.6495 & 1.6500 option strikes set for expiry today (NY cut at 14:00 GMT).
US data is set for release into NorAm trading but the 11:00 mortgage data and the 15:30 GMT Transportation Services Index have been overshadowed by the 18:15 GMT verdict from the latest one-day FOMC meeting. No change is expected but the Bernanke comments are being keenly awaited by the FX markets.
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