The SNB raised their growth forecast to 1% for 2012 vs 0.5% prior estimate. They also maintained the ceiling on the CHF vs the EURO at 1.2000, promising to defend the level. The USDCHF declined on the news to the midpoint of the 2012 trading range at the 0.92607 level. The EURCHF reversed sharply – retracing 61.8% of the recent move higher (to 1.2083 low). The pair has since moved back above the 1.2100 level as NY enters for the day. The EURCHF has stabilized over the last few months nearer the target by the SNB. The low over the last two months is at 1.20318 while the high is 1.21456. With the better economic projection traders will likely respect the 1.2000 level below, but limit the upside as well. The 100 day MA is at the 1.2175 level currently. This level should be a ceiling for the pair. The USDJPY (EURJPY, GBPJPY, AUDJPY) fell after rallying strongly over the last few days. The higher bond yields in the US has led the currency pair higher but profit taking has pushed the pair down to and through the 38.2% of the weeks rally higher. That level comes in at the 83.325 level. The next key support comes in against the 38.2% of the move down from the 2010 high. That level was broken this week at the 82.975 level. I would expect that the price would find buyers against the level on the first test. In the EU, former ECB board member Bini Smaghi said that the EU officials need to accept that Portugal and Ireland may need further bailout assistance. Meanwhile Ireland said that they are on track to emerge from aid program in 2013 and return to markets in 2013 as well. Is Ireland right or Bini Smaghi. Greece unemployment rate increased to 20.7% in the 4Q from 17.7% in quarter 3. This is the highest rate going back to a 1998 (at the least). The AUDUSD has trended to the upside today- moving above trendline resistance at the 1.0500 area and is testing the 100 hour MA at the 1.0521 level as the NY session opens. US Empire Mfg index (exp of 17.5 vs 19.53 last), PPI (exp of 0.5% vs 0.1% last, ex food and energy exp 0.2%), Initial Jobless Claims (exp 357K vs 362K), TIC Flows (40 B bs 87.1B) and Philly Fed Index (exp -36.0 vs -36.7 last) are on tap for release today.