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

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.