USD/CHF has continued to trade shy of 1.23's in Europe this morning as dealers ignore the local KoF data in favor of global sentiment.
Dealers see the 12:30 GMT May Durable Goods release as the key short-term event risk but economists look for a -1.0% reading on the month. Following this, Commerce Secretary, Gutierrez, speaks in Washington at 13:00 GMT with a gap before the Paulson comments at 17:25 GMT.
At 16:00 GMT the Chicago Fed data for May is released but the attention is likely to turn to the two-day FOMC meeting due to convene today. Dealers do not expect the Fed to alter US rates but as ever the outlook for US inflation continues to provide the market with a clear focal-point for debate and speculation.
Should USD/CHF break above the 1.2300/10 offers into NorAm trading then some will look for stops on the move above 1.2315. However, it is not until the price can move above 1.2355 that real follow-through will be garnered in favor of the US unit. As a result, the risk should remain for stabs lower with the daily low from Yesterday eyed at 1.2261.
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