The Swiss Franc rallied into early European trading on the back of the upward surprise in April Swiss CPI data. Macro buyers emerged after the +0.5% Y/Y release and USD/CHF was sold back from 1.2140 towards 1.2100. Bids into 1.2095/2100 stalled the move and the price has since consolidated the drop but stops below 1.2090 remain targeted by bears.
[EUR/CHF] was sold from 1.6515 to 1.6472 in the initial knee-jerk move. However, buyers in the cross were noted trailing back to 1.6465 so the move lower in the cross began to stall also. However, selling has persisted here with sub-1.6465 stops now in focus. Looking ahead, US data will once more drive short-term volatility but it is the Friday release of US Employment data that many prefer to concentrate upon.
Into NorAm trading and the USD still needs to navigate the preliminary Q1 productivity data and the April Non-Manf. ISM release. Weekly jobless data is also set for release with the Q1 data at 12:30 GMT while economists look for the 14:00 GMT ISM data to rise to 53.0 from the 52.4 seen previously. After this the attention will turn to the Paulson comments.
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