CHF Dollar FX trader
(Action Economics) - 24-Jan-13 09:02 - EUR-CHF is underpinned by long position building, which follows Wednesday's round of bargain hunting after the brief move under 1.2350.
It has experienced more local name demand today from the 1.2370 area, while a better than expected German manufacturing PMI reading has carried EUR higher after a brief dip in the wake of a poor French reading.
In the last few sessions Swiss and German flows carried EUR-CHF over 1.2400, but it has had a hard time sustaining higher levels since it corrected from the 1.2570 area late last week.
The cross is still correcting overbought levels and there are still mixed macro leads globally, which could explain the pause, though long term players are still positioned for a move back over 1.2500 towards 1.2600 and above.
The success of this trade will largely depend on whether the eurozone can sustain the improved conditions seen since the start of the year.
USD-CHF is supported on dips into 0.9300 and below within the narrow 0.9280-0.9350 trading band.
SNB's Danthine said he welcome easing of pressure on the CHF, but ruled out a change to the lower limit when asked about a 1.2500 level.
He said cap policy is not designed for making small adjustments.
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