Franc buy-backs have continued ahead of the weekend and EUR/CHF sales have weighed on USD/CHF with trading absorbing the 1.2420/25 demand late-on. Bids trail to 1.2400 while EUR/CHF eyes sub-1.6165 & 1.6150. Looking ahead, SNB Chairman, Roth's, failure to broach the subject of CHF weakness in his recent speech will force USD/CHF to be driven by external factors in the short-run.
As a result the 13:30 GMT US Employment report will generate the afternoon bias. Stops are noted above 1.2460 & 75 on the topside should the Dollar strengthen with sellers into 1.2500 then eyed while the sub-1.24 stops (tipped at around 1.2380) will be eyed on further weakness. On the options front, dealers note the EUR 500Mln 1.6120 strikes set to roll off at the NY cut (15:00 GMT).
While these may act as a weight dealers note an increase of downside interest in both EUR/CHF & USD/CHF. EUR/CHF 1.6050,60 & 75 strikes roll off into next week while traders note the USD/CHF recommendation to buy Q1 SNB downside exotics. A French player touted a March 15th 1.2225 one-touch trades while a US player talks of longer dated 1.2000 exotics.
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