Markets are struggling with yesterday’s decision from the SNB. Liquidity in FX markets has been below average with the USD somewhat mixed. CHF has retraced 4% of yesterday’s gains; JPY, EUR and CAD are weak, while GBP, AUD and MXN are holding onto gains. U.S. 10 year yields have climbed off their lows, now at 1.74%, equity markets are mixed and gold and oil prices are flat. The focus in FX markets remains on the fallout from the SNB decision and building expectations for next week’s ECB meeting. Today’s fundamental focus will be U.S. CPI, expected to drop to 0.7% on headline and 1.7% on core; as well three Fed speeches.
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