Into European trading and the Swiss Franc looked largely unchanged following the overnight volatility in the wake of the dovish Fed comments from Poole. However, these were soon shrugged off and dealers returned to selling the Swissie, as the low yielding currency and central bank jitters over the longer-term economic outlook left the market seeing few attractions to holding the alpine unit in either the short or longer-term.
USD/CHF rallied from 1.2667 to re-test the supply trailing from 1.2690 to 1.2700 as a US name bought good clips for several of its corporate customers. Swiss players, European names, proprietary accounts and other funds were active amid the move but it was the US player and their calls for a return/retest of the 1.2700's that helped spark the U-turn. More offers then noted above 1.2715.
Looking ahead, US September Import/Export Prices & Retail Sales data are due at 12:30 GMT. Higher USD rates are not expected to have had any considerable impact on the Labour Dept. release while economists look for the September Retail Sales headline to show a 0.2% rise.
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