Dollar Soars as Global Equities Tumble- Yen Heavy on MoF Intervention

The greenback advanced against all its major counter parts an hour into US trade as global equities continued to sell-off, with the Swiss franc topping the performance charts with a loss of just 0.19% against the dollar. The USD/CHF pair tested the 23.6% short-term Fibonacci extension taken from the July 31st and August 1st crests at the 0.78-handle, before finding solace around the 61.8% extension at 77.15. The swissie is likely to remain well supported however as remarks made by ECB President Jean-Claude Trichet saw European investors once again seeking refuge in the swissie. A downside break here sees interim support at the 76.4% extension at 76.80 backed by the 76.50 level and the 76-figure. Topside resistance holds at the 78-handle, with subsequent ceilings seen at 78.50, 79, and the 79.50 level. Overnight traders will be eyeing data out of Switzerland with July CPI data on tap. Inflation is expected to remain subdued with consensus estimates calling for a print of -0.6% m/m and 0.7% y/y, well below its European neighbors where the risk to inflation remains to the upside, as cited today by President Trichet.