Euro comeback on SNB rumours

With the US entering the ring, even if only for half a round, risk is back on as rumours are circulating that the Swiss National Bank might raise the floor on the EURCHF. The 1.20 floor inserted in early September has so far proved effective with the EURCHF currently hovering around 1.23, up 50 pips for the day. Though the markets are headed for a much needed break over the weekend yields continue higher in peripheral Europe with the Italian 10-year at 7.3 percent and with no improvement in the ‘fix the Eurozone’ department fear could well return as early as Monday. Up until the SNB rumours the day had been eventless with the EURUSD selling off as per automatic as the calendar served up an entirely unappetising buffet consisting of German Import Prices (-0.3pct.) and French Consumer Confidence (79, 82 prior). In that regard next week looks much more appetising with an up-and-running US delivering ISM Manufacturing and the mammoth employment report with payrolls currently expected to have risen 120,000 in November. EURCHF intraday chart Source: Bloomberg L.P.