Into the new week and Swiss economic data was overlooked into early European trading. Swiss Industrial Orders data was released up 10.1% Y/Y in Q3, up from the previous 9.8% seen in Q2, but with speculative data showing an increase in Franc shorting the market remained of the opinion that using the CHF to fund carry trades was both beneficial and profitable.
USD/CHF teetered close to the 1.22 mark for the majority of the European morning with offers into the 1.2210/15 area limiting the topside. However, dealers see the 1.2230 as key to further topside action in the longer-term so we expect more meaningful price-action on approach to this level. Against the Euro, the CHF matched its Friday low as the single currency was underpinned.
1.6000 printed but the cross failed to break any higher and with EUR/USD sold in the wake of the EU Commission report the topside in EUR/CHF was artificially reinforced. Trading has since eased but a return & retest of the 1.60 level is eyed and should a break higher be seen then the yearly high at 1.6011 will come back into focus.
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