A couple of rumors are making the rounds. One is a bearish report on EUR;/CHF from a US consulting shop and another is talk that the ECB will extend their long-term refi operations, which expire later this month.
The ECB lend 442 bln last June in a one-year refi that rolls off later this month. banks put up government bonds and the ECB lent them cash for one-year, and that year is coming to an end. The market will need an awful lot of funding at month end.
The ECB announced months ago that its was ending its term funding operations but has been forced to reinstate both the three and six month refi when the sovereign debt crisis intensified last month.
EUR/USD sits at session lows of 1.2202.
