EUR/CHF is seeing a very strong rally in late European afternoon trading. It’s not clear what the catalyst is but one thing is very clear to me: The attraction to holding CHF absent any sort of crisis atmosphere is beyond me. Once the it became clear the European sovereign debt crisis was over (clear by some point over the summer…June, July, August, take your pick….)
With the dollar trying to put in a bottom after a sharp downtrend in place since August, perhaps the franc is the canary in the coalmine, trying to tell us that the worst is over for the buck.
A move through 1.3675 would be important for EUR/CHF while a move above 0.9845/50 would help signal a dollar bottom.