EUR/USD had a strong day on Friday as the "risk on" trade is back. However, we think that the upside is limited because the situation in Europe is hardly stable. The pair will be effected by the FMOC minutes on Wednesday as well, so the action ahead could be sloppy. Also, there is that bit about a French Presidential election...
The EUR/CHF continues to sit just above the 1.20 level, and as a result it can't go anywhere. The EU has to get it's act together for people to take the upside seriously. We believe that the pair will need to break below the 1.20 level in order to trigger intervention to move this pair. Dead money is a phrase that comes to mind. However, if you are patient enough, it does pay a positive swap.
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