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FX Update: Swissy Firms Amid Weaker Equities

Posted:01/12/2008 9:53 by Peter Burnside
CHF traded on a firm footing, with the market influenced by broad based risk reduction. Dow futures are deep in the red and European indices have followed the Asian market lower. EUR/CHF dived from 1.5427 highs in Asia to hit 1.5307 session lows before it rebounded on weak Swiss PMI. November manufacturing PMI slumped to 35.2 from 47.0 in October, which was well below expectations and followed last week's weak KoF release. The number will reinforce SNB rate cut expectations despite an aggressive round of cuts from the Bank already. EUR/CHF moved back in to 1.5350, but may see ranges narrow up around these levels amid reports of a good size 1.5335 option strike due to expire later today. Elsewhere, USD/CHF moved up to 1.2154 highs as the dollar built on Asian market gains, with risk aversion dominating early European trade. The dollar pairing eyes offers at 1.2160-70 and in to 1.2200, while bids are tipped at 1.2080 and in to 1.2050-60. click here to return to the top of the page
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