EUR-CHF recorded early European highs of 1.5217 before turning back in to the 1.5165 region. An improvement in global risk appetite had been a supportive influence on the cross, but a fall out in USD-CHF weighed. The dollar pairing fell from 1.0893 Asian highs and traded at an early European low of 1.0789 as Middle Eastern names triggered a series of stops in EUR-USD and Cable. The fall out in Swiss retail sales is unlikely to have encouraged risk appetite locally, with the May number showing a 1.4% y/y fall versus the 1.2% gains in April. The 3m y/y trend rate still rose 0.3% versus -0.5% in April. Retail sales is expected to remain volatile ahead, with a risk that the numbers will begin to deteriorate as consumption is impacted by deteriorating labor data.
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