EURCHF holding at 1.2300 while EURUSD tanks to 1.3300 can only mean USDCHF heads higher and we’ve discussed the SNB EURCHF 1.20 peg correlation on a number of occasions, including the comments box today.
Granted the peg is a long way away from current levels but the correlation has been pronounced lately as USDCHF is perceived as a long euro hedge.
USDCHF has soared to 0.9250 taking out sell orders and barrier options in its stride accelerated by stronger US GDP data
Currently 0.9230 but dips down to 0.9200 will be bought now and more to 0.9150 ahead of NFP’s tomorrow.
