The USD CHF posted a daily closing price reversal top on Monday and confirmed the pattern overnight. This type of formation sets up a possible correction back to 1.1184 to 1.1123 over the next 2 to 3 days. The direction of the Euro will dictate the movement in the Dollar/Swiss.
The recent divestment out of the Euro has been putting strong appreciation pressure on the Swiss Franc. The Swiss National Bank fears that continuous selling pressure will hurt price stability and put the Swiss economy at risk. The main concern is damage to the export market will stall the economy. SNB President promised to act in a decisive manner which could mean another round of intervention should the Euro weaken substantially.
The GBP USD is holding inside of yesterday’s range. The tight overnight range indicates impending volatility. Earlier this morning, it was reported that U.K. inflation surged 3.7%. This report has had very little influence on the Sterling.