A marginally better bid to the Dollar but no major movers through the European morning. The usual pre-payroll lethargy hit the market early and tight ranges played out between 1.1950 and 1.1985.
Big picture dynamics continue to show the Dollar in recovery mode but progress has been slow and from a technical perspective the potential for a trend reversal in USD/CHF has been lost. Little on the domestic front for the Swiss market but the Swiss National Bank's address to the investment community in Fribourg did provide some food for thought. The Bank's Chief, Jean-Pierre Roth, did not make any reference to monetary policy but based his speech around the potential for a global financial crisis.
The Roth warning comes at a time when investors have moved heavily into high yield and emerging markets and global equity markets are trading just off significant highs. USD/CHF is currently capped at 1.1985, the 10-day moving average line, but the risk is seen to the topside going into the US data release.
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