USD/CHF: Approaches Session Lows; Cross Cushions Pullback

USD/CHF approached session lows at 1.2245 before staging a mild bounce. Heavy buying of EUR/CHF is helping cushion the blow in USD/CHF as dealers rush to reestablish carry trades after many bailed out this morning after the aggressive steps by China to rein in their economy and to appease trade partners before the G8 and the Washington summit next week. Small offers are seen at 1.2257/60 with more at 1.2275/80 on rebounds. A break of 1.2245 targets 1.2230/35 and 1.2195/00.