USD/CHF opened in NY at 1.2450 had a vain stab at the top, failing at 1.2460 early in the session, then collapsed trading to a low of 1.2388 in early NY afternoon trading. There was a generally negative air about USD/CHF all day, and a steady diet of various EU officials confirming that forexrates will be on the menu at the G7, and that the SNB are not happy with the weakness of the Franc served as a leitmotif for the session.
A news story on Reuters quoting SNB board member Philipp Hildebrand that "more interest rates hikes are needed" and cautioned about unwelcome currency fluctuations sent EUR/CHF into a tailspin, dragging USD/CHF with it. The close was 1.2403, just above the 1.2400 stop level that triggered the test of the lows.
EUR/CHF plummeted to a 1.6085 low from 1.6120 after the Hildebrand comments, andthe pair closed at 1.6098. GBP/CHF opened on the back foot, and collapsed from 2.4500 to 2.4445 as Europe squared up, Hildebrand's comments were the catalyst for a further 25pt drop - the close was 2.4440. CAD/CHF closed down 40pts at 1.0485.
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