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SNB under the cosh - Despite the risk.........>

FOREX
FOREX: SNB under the cosh
- Despite the risk appetite environment seemingly improving (Iran tensions
soothed, US/China trade deal as good as signed, China removed from US currency
manipulator watchlist) the CHF remains firm, keeping EUR/CHF close to recent
lows and surely outside of the SNB's comfort band. Sight deposits data out
earlier this week, however, suggest the bank are keeping their powder dry -
which may be giving markets an excuse today to press the EUR/CHF rate lower
still. A break through 1.0783 would mark new multi-year lows.
- GBP again trades soft, keeping GBP/USD below the 50-dma which becomes
near-term resistance. There's been no fresh newsflow as markets remain focused
on the weekend's dovish message from the BoE and further poor economic data.
$1.2905 is the medium-term target for bears and break through here turns the
outlook outright bearish. The greenback is slightly higher, benefiting from a
moderate pullback in equities.
- US CPI data headlines the data docket, with the central bank speaker list
featuring Fed's George & Williams, as well as ECB's Mersch, Villeroy & de Cos.

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