CHF maintained an easier tone on Wednesday, with EURCHF trading in the mid 1.47's and USDCHF trading ahead of the 1.1600 handle. European equity markets experienced light profit taking after Tuesday's rebound, but the overall tone has improved after Citigroup said it made a profit in January and February. Potential negatives for the swissie are news that the OECD has added Switzerland to its list of non-cooperative tax centers, while UBS also said it recorded a net loss of CHF 20.9B in 2008. The news, while only having a small impact on price action, did harden the bid tone in EURCHF, which benefited in the last 24 hours on pre-SNB positioning. The market is pricing in another rate cut tomorrow and the risk of fresh unconventional policy measures, which could add further weight on the CHF and provide fresh monetary stimulus. EURCHF is expected to make gradual improvement towards 1.4800, where a break above would confirm further gains and encourage accelerated buying.
