FX Update: The dollar has been trading mixed
FX Update: The dollar has been trading mixed so far today, holding net steady versus the euro, gaining ground on the dollar bloc currencies and Swiss franc, while losing ground to the pound. The biggest mover has been the Swiss Franc, which was showing a 0.3% decline against the Dollar heading into the New York interbank open, and a 0.6% loss to Sterling. EUR-CHF printed a five-and-a-half-month high at 1.1476, with the cross having now gained on each trading day bar two since March 29. There didn't appear to be any fresh catalyst today. Market narratives have been talking about the market being in process of giving up on the Franc's role as a safe haven, which has been afflicted by the SNB's -0.75% deposit rate, and which has finally led to down-weighting of the Swiss currency by reserve and portfolio overlay managers. Elsewhere, EUR-USD has remained settled near 1.1250, up from the two-week low seen last Thursday at 1.1226, which was a product of disappointing preliminary PMI data out of the Eurozone. USD-JPY came under pressure at the Tokyo fix today, which produced a 12-day low of 111.65, before the pair recouped to net unchanged levels near 112.00. Sterling, which underperformed last week, perked up a little in early-week trading in London, with Cable lifting back above 1.3000 after yesterday edging out a six-week low at 1.2975, and with EUR-GBP having dipped to an intraday low at 0.8642. The risk appetite mood has been cautious. Chinese markets have been under pressure after the official Xinhua news services reported from a policy meeting chaired by President Xi that monetary policy will be "neither too tight, nor too loose," which has been taken as a sign that Beijing will slow the pace of policy easing.