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Volatile CHF raises suspicions of SNB.........>

FOREX
FOREX: Volatile CHF raises suspicions of SNB involvement
- A relatively abrupt rally in EUR/CHF (and absence of any notable trigger)
prompted some suspicions of official interest in the cross early Wednesday.
Alongside the European equity open, EUR/CHF rallied 40 pips or so in relatively
little time, narrowing the gap with (but not breaking) the 1.08 handle. This
shifts focus to Monday's sight deposit data for any indication of deliberate CHF
weakening. Either way, the CHF is the weakest currency in G10 Wednesday.
- Elsewhere, the EUR and AUD bounced off the overnight Asia-Pac lows as equity
markets look generally stable. Similarly, bond markets are a touch weaker across
core European and US markets, which has kept most price action rather muted.
- Canadian CPI and US existing home sales are the data highlights Wednesday. The
Bank of Canada rate decision is also due (rates exp. unchanged at 1.75%) and
further headlines are likely to trickle out throughout the day from the World
Economic Forum in Davos.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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