USD CHF Firms on Possible SNB Activity

Traders kept upside pressure on the USD CHF throughout the day despitethe better than expected U.S. Consumer Confidence report. The recentrally in the Swiss Franc renewed concerns that the Swiss National Bankwould intervene if valuations got too high.

Traders kept upside pressure on the USD CHF throughout the day despite the better than expected U.S. Consumer Confidence report. The recent rally in the Swiss Franc renewed concerns that the Swiss National Bank would intervene if valuations got too high. 

Talk is also circulating that the Swiss National Bank may have to consider other forms of quantitative easing if the Swiss banking system does not to show signs of improvement or if the global financial crisis continues.

The charts indicate that this market is caught between a pair of important retracement prices at 1.0973 to 1.0660. The trend is down, but could begin to strengthen if 1.0973 is regained.