Forex: USD/CHF dives to new 1-month lows in early Europe trade

FXstreet.com (Barcelona) - European flows have plunged the USDCHF from 0.9270 area at 07:00 GMT, printing new 1-month lows, at 0.9246. Market participants have the month end in their minds and hopes of a US "fiscal cliff" deal soon.

Germany saw its retail sales data released, improving from -3.4% to -0.8% (YoY) in October, although estimates were pointing to +1.2% growth. The monthly change was quite disappointing at -2.8% (consensus of -0.2%). In France, consumer spending fell -0.2% and PPI rose +0.5% in October (MoM).

A limp rebound of rebound of the USDCHF, with supports at 0.9240 and 0.9215, leave Commerzbank analysts unable to rule out a possible expanding base pattern. "These are hard patterns to identify (and even harder to trade) as the market breaks to new lows but does not sustain the move)", wrote Commerzbank analyst Karen Jones.