ForexLive's  Instablog

• Sarkozy and Merkel want fiscal compact completed by March 1; Greek debt deal must be reached soon, before second aid package pays out
• UK’s Cameron sees euro holding together
• SNB Chairman Hildebrand resigns under pressure; Jordan to take helm temporarily
• Mrs Hildebrand apologizes to SNB, Swiss people for error in judgement
• Germany sells 6-month bills at a negative yield 
• ECB bought EUR 1.1 bln last week; Total EUR 213 bln
• Banks deposited EUR 464 bln over the weekend
• Greek haircuts to remain 50%: IIF
• SNB’s Jordan: 1.20 peg to be defended with the utmost determination
• Citigroup economist: Ireland may need second bailout or haircuts on debt 
• Fed’s Lockhart (voter) : Open-minded on need for more stimulus
• White House chief of staff Daley resigns; Replaced by budget director Lew
• US consumer credit rises $20 bln in November; largest rise in 10 years
• S&P 500 rises 0.25% to 1281; Milan falls 1.7%
• US 10-year note yield unchanged at 1.95%; Italy falls 6 bp to 7.17%
• WTI falls $0.20 to 101.38, recoups losses as EU Iran sanctions talks moved up ; gold falls $6 to $1611

A pretty tame market in the US today with the euro trading with ranges established in London earlier in the day. We fell a handful of pips short of the London highs on an afternoon rebound, topping at 1.2778 compared to 1.2785 in Europe.

Dips were limited to 1.2720. BIS buying was spotted early in the US session and helped limit pullbacks during the US session as short-covering was today’s dominant theme, if there was one.

EUR/CHF fell below 1.2125 for the first time since September after SNB chief Hildebrand fell on his terrible Swiss sword. Stops were triggered as low as 1.2106 as the market feared a policy shift by whomever filled Hildy’s shoes. Jordan was quick to reiterate existing policy remains in place but the market seems intent on testing the bank’s resolve. Heavy stop-loss sell orders are seen below 1.2100 and look likely to be a target in the next few days.