Reports circulating intraday note that it remains too early to write-off the Swiss Francs "Safe-Haven" tag. Given that the unit failed to rally in the wake of spike in geo-political concern following the Korean nuclear news many have again claimed the Swissie is no-longer the first port of call in a crisis. However, one Swiss bank noted in their research that the increase in use of the Swissie as a funding tool for carry trades over this period would have offset any positive knock-on from inflows.
Their report went on to point out the positives to be taken from the "carry" as it is a reflection of a "low-volatility environment" and points to a "secure & stable economy". Intraday and the early Franc strength failed to be sustained against both the Dollar and the Euro with dips in both USD/CHF & EUR/CHF soon correcting. Ahead of the US trade data (12:30 GMT) the Dollar pair was once again toying with a run at 1.2730 offers, with the 1.2745 failed high from yesterday above. London players expect 1.2700 to prop dips with stops sub-1.2675 bolstered by the mid-European session bounce off 1.2678.
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