CHF Higher in Lackluster Trading

Note  The table above is updated before publication with the latest consensus forecasts. However, the text charts are prepared ahead of time. Therefore there can be discrepancies between the forecasts given in the table above and in the text charts. 

Rates as of 0500 GMT

Market Recap

A mixed day in the US stock market yesterday. The NASDAQ was up 0.48 but the broader market was down slightly SP 500 0.16 from Tuesdays record high as a worsening virus count and weak economic data punctured investors euphoria. Yesterdays initial jobless claims rose for the second week in a row instead of falling as expected, while personal income for October fell by a steep 0.7 vs. 0.1 expected. The news adds to concerns that the US economy is losing momentum as the virus surges out of control heading into the winter. 

The movements in the FX market overnight though are barely worth noting. Im just puzzled and disappointed by the surge In CHF. Im at a loss to explain it, either, except by way of the usual riskoff reaction to the weaker stock market. But the pair doesnt seem to be following the US market very closely.

EURCHF maybe shows a better correlation, though still not explaining the move. 

Looking at Bloomberg, the only relevant story I can find is one saying that EURCHF Braces for Gains After Breaching Trendline From 2007. The Swiss franc closed at twomonth low versus the euro on Tuesday, breaching a trendline that dates back to before the outbreak of the 2008 global…

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