FX NOW! USD/CHF, EUR/CHF FLOWS – Speculation of SNB bids in EUR/CHF; 1.2100 OPTIONS
EUR/USD dipped to day lows around 1.3028-30, with ongoing concerns over eurozone – focus on Greece warning that it may exit Euro if talks over second bailout fail – continue to cap EUR/USD. More EUR/USD stoploss below break of 1.3000. Offers at 1.3050-60 – with intra-day, short-term players a tad caught long after yesterday’s rally from 1.2936 to 1.3077.
USD/CHF at 0.9335-38, off the 2-week of 0.9305, lowest since Dec 12 0.9240, seen yest on broad USD sales, Offers at 0.9350-60, with EUR/CHF under pressure – but seen supported by rumours of SNB bids on dips. EUR/CHF at 1.2163-66, speculation of SNB bids, interest, Swiss supranational bids around 1.2100-25 level. Huge stoploss below 1.2120 as well, and speculation of 1.2100 optoin barriers. 1-m Vols levels seen around 5.790%, vs 5.8950%, levels at 5.075/6.575, r/r 0.625/1.675%. 3-m Vols 6.945/8.120%, r/r -0.665/0.160% – with SNB’s determination to defend EUR/CHF at 1.2000 “suppressing” Vols to single digit.
