Forex: USD/CHF retraces early European plunge (Barcelona) - The USD/CHF bounced strongly from its early European decline as economic data was released and the Swiss KOF Leading Indicator softened from 1.64 to 1.5 (consensus of 1.6) in November. The pair trades at 0.926/65 ahead of the NY session, with investors eyeing the US Chicago PMI.

The preliminary release of the Spanish Harmonized Index of Consumer Prices eased from 3.5% to 3.0% in November, below the 3.4% consensus. Retail Sales in Greece contracted further in September, from -9.2% to -12.1%.

The preliminary release of the Italian CPI (EU Normalized) fell -0.3% in November, allowing the annualized figure to soften from 2.8% to 2.6%, as expected. The October unemployment rate in Italy was published, rising from 10.8% to 11.1%, coming higher than the expected 10.9%.

ECB's Draghi spoke in early European hours, expecting EZ recovery in H2 2013 and defended that the unified supervision must apply to all banks to avoid banking sector fragmentation. The German Parliament approved the revised Greek deal this morning and an EU official said he expects the Greek buyback process to begin next Monday. The rating agency Fitch revealed that US funds increased their exposure to Eurozone banks for the fourth month in a row.

“Negative outlook keeps key level and breakpoint at 0.9213 in near-term focus, as extension below here would signal an end of 10-week consolidative phase and open 0.9100 zone for test”, wrote Windsor Brokers analyst Slobodan Drvenica, ponting to initial support at 0.9289 ahead of 0.9339 (28 Nov recovery peak / 55 day EMA) to provide temporary relief.