US traders report that despite leveraged accounts squaring shorts out of Europe, heading for the exits for an early close, USD/CHF is still having trouble breaking out on the topside. Strong orders in the 1.2520-25 area, attributed to European semi-official offers, and commercial hedgers are holding the greenback back.
The range in NY has been 1.2495/20 for the past hour and a half and spot traders have no reason to believe that should change any time soon, with spot currently at 1.2505. Earlier reports of a very large Swiss bank selling GBP/CHF either on behalf of a large European central bank or M&A related (most market participants are on the latter) also have encouraged US participants to sell rallies. There are light stops above 1.2525, and heavy stops at 1.2580-85.
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