EUR/CHF falls to the lowest since March 5
Just when Italy descended into a self-inflicted political quagmire, Spain decided to join in with a surprise non-confidence motion in the government.
So it's now a mess on two fronts with Italian 10-year yields up 14 bps and Spanish 10s up 10 bps today.
An interesting spot to watch is EUR/CHF. The pair has now completed the round trip after rising to 1.20 from 1.15 and now falling back. It's at 1.1547 now and can fall to 1.1475 where the late-February low was.
It will be interesting to see the weekly CFTC positioning data. There was a big short in the Swiss franc that had built up and now it's likely to be squeezed out.
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