MARKET TALK: EUR/CHF Dip Part Short-Trimming, 'Courage' Building -DB

12:03 (Dow Jones) Pointing to CFTC data showing speculative market is largely short Swiss francs, Alan Ruskin at Deutsche Bank says euro/Swiss's brief dip below 1.20 is a combination of traders scaling back on anti-Swiss bets, and gradually "plucking up the courage" to test the level. "The Swissie's being used as a funding currency, so this is a wake-up call in a sense." Yet with the SNB's credibility clearly on the line, Ruskin says the central bank may even try to raise the floor, which comes with its own set of perils. "If it goes below 1.20, the SNB could reinstate a new floor, but we could get to 1.10 very quickly. I don't think it's going to happen anytime soon, but usually if [a peg] snaps it will snap big." EUR/CHF briefly dips to 1.1990 before ticking back up to 1.2019, according to EBS via CQG.