The franc has found favour for the second day running with a particularly sharp demand just after 07.00 GMT this morning
Stop-loss sellers were noted through 0.9270 on USDCHF and we've been down to 1 week lows of 0.9235
EURCHF has needed little excuse to break lower and tested 1.0400 demand in a rush before rallying to 1.0452 currently. Correlation between this pair and 2-year Greek yield remains to the low side
Talk of hedge funds still being long USD through the option market with the SNB also in focus with their latest meeting/interest rate announcement tomorrow
These markets are increasingly fickle and liquidity getting ever thinner as concerns over greater amounts of regulation to come reduce the amount of speculative market-making
In this climate it doesn't take a lot to move prices, as we've seen across many pairs recently, and Swissy pairs remain ever vulnerable given the lack of market- makers at the best of times. And we know what happens in the worst of times huh?
I remain a buyer of CHF overall but caution must be exercised ahead of knowing exactly what the SNB might have up their sleeve tomorrow, given that recent rhetoric is having little effect in weakening their bloated franc.
Perhaps they only have themselves to blame
USDCHF currently 0.9282 trying to rally as intra-day shorts cover for profit but sellers seen again into 0.9300 and 0.9330
