On-going demand has been noted by option players for short-dated USD/CHF strikes. The Thursday SNB meeting combined with speculation that Roth and company might raise rates by more than 25bps has buoyed demand. 2-day interest is reported to be pricing strikes around the 1.2150 mark while 1-Week interest is centered upon 1.2100 and below prices. Spot currently trades around the 1.22 area as the Dollar consolidates its previous weakness with the intraday low now standing at 1.2273.
Offers into 1.2210/15 look to cap rebounds. Technically, the 61.8% Fibo of 1.1885 to 1.2575 (Dec 5th low to Jan 31st high) at 1.2154 was pierced on March 5th as spot spiked to 1.2110. However, the day failed to close lower or below the Fibo and as such some will still look for support to emerge into this technical support area. Below a break of the March 5th low (also the 2007 low) at 1.2110 will eye a full retracement. Against the Euro the Franc has failed to hold its gains as EUR/CHF bounced off the 10-Day moving average line (now at 1.6095).
The cross is now consolidating around the figure, working a rough 10-pip range either side, with similar option structures to the above also seen going through here. 1-Week atmf has been sold down from 5.4 to 5.2/5.7 while 1-Month is reported to have been paid up 4.0/4.1 having traded around 3.7 yesterday. Short dated strikes are reported to the 1.6000/25 area as a target with dealers also noting post-SNB expiries ranging from 1.5750 to 1.5825.
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