The first positive year-on-year reading for Swiss inflation in over two years has provided little in the wayof follow-through support to the Swiss Franc as it continues to track the Euro fairly closely going into thismorning’s trading. Fresh inflows of safe-haven support have helped the Swiss Franc reach a fresh 2-month highversus the Euro this morning, but have also made it more dependent on weak US jobs this morning to sustain thiscurrent up move. Given the still sluggish levels of Swiss inflation, a positive surprise from today’s Non-FarmPayroll numbers could trigger a sizable pullback. The December Swiss should find early support around the111.44 level, and along with the Yen will be focusing very closely on today’s US jobs numbers.
Technical Outlook: Rising stochastics at overbought levels warrant some caution for bulls. A positivesignal for trend short-term was given on a close over the 9-bar moving average. There could be more upsidefollow through since the market closed above the 2nd swing resistance. The next upside target is 112.46. Thenext area of resistance is around 112.11 and 112.46, while 1st support hits today at 110.97 and below there at110.17.