USDCHF is currently undergoing a.......>

DOLLAR-SWISS: USDCHF is currently undergoing a corrective pullback from the

1.0056 peak seen earlier today. Bullish tend and momentum indicators suggest

this pullback will be limited. While some near-term indicators appear

overextended, they have not given negative signals as yet. The structure of

recent gains also remain bullish with the acceleration of the already steep

uptrend through the important 1.0038 level triggering further positive signals.

CHF is close to the bottom of the G10 ranking tables, with just the SEK

performing more poorly. The Swiss CPI for April came in weaker this morning, not

helping the CHF. It is also worth noting that on a Harmonised basis, the CPI

slowed dramatically to just 0.4% y/y in April against the 0.7% y/y previous

reading. This measure of inflation is now back at the level seen in June last

year. Holding above 1.0020 will keep the current USDCHF bullish picture intact.