The Franc traded on a steady footing into the NorAm open despite the PBOC news prompting broader market volatility. As FX markets digest their Chinese lunch some note that USD/CHF trades on an even-keel as the broader USD bid-tone is offset by an increase in safe-haven flows that have propped the Swissie.
Offers into 1.2280/85 cap the topside ahead of a test of 1.2300 while bids into 1.2245 prop on dips with local traders once more looking to EUR/CHF to add intraday chop. The cross has failed to set another fresh record high thus far today and the option barriers up at 1.6600 remain in play. Into North American trading and Michigan Sentiment data is set for release at 14:00 GMT.
Had the deluge of Chinese news not hit the screens then this would have been eyed as the key short-term event-risk, however, in the wake of the PBOC news and potential further Yuan gains in the pipeline the market will be looking elsewhere. US fundamentals should not be overlooked and the 14:30 GMT weekly ECRI data should keep one-eye on the US with more Moskow comments then due out of Chicago around 16:45 GMT.
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