USD/CHF: 1.2550 Re-Test Eyed As Data Matches Rumour

A re-test of the 1.2550 level will be eyed by bulls in the wake of the buoyant 98.0 January Michigan sentiment reading. Those who bought on the rumour will undoubtedly sell on the fact so we at IFR foresee further profit taking hampering the ability of the pair to eke more meaningful gains. However, into the European close and further Dollar strength could filter through as speculation over fix demand keeps the US unit bid into the weekend.