USD/CHF opened in New York at 1.2520, a shade below its European 1.2530 high, inspired by a swoon in Swiss banking stocks, and soft Euroland data. The US employment cost index came out at up 1%, a tad higher than expected, and USD/CHF hit 1.2515 ahead of Chicago PMI after slipping below the figure.
The numbers hit the screens, and the dollar plummeted. Chicago PMI came out at 53.5, vs 58.0 median, and consumer confidence was 105.4 vs 108.0 median. The life got sucked out of the dollar faster than traders could say Bela Lugosi. The low was 1.2415, which was battered on for hours but didn't cede, and the "dead cat" bounce close was 1.2440. Canadian banks and companies' financial year-end made the North American month end quieter than a morgue.
Reversal of carry trades also pressured the dollar, with EUR/CHF dropping 35pts to 1.5860, before recovering to close down 20pts at 1.5875. GBP/CHF dropped from 2.3775 to 2.3690, before closing at 2.3720. CAD/CHF dropped from 1.1115 to close at 1.1085, CHF only weakened against JPY, as JPY carry trades had been the catalyst, closing at 94.05 after trading as high as 94.30 earlier.
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