European morning wrap: Swissy firm as SNB leaves peg at 1.2000

Swiss National Bank sticks with 1.2000 peg SNB's Hildebrand:  Introduction of minimum fx rate has corrected the massive overvaluation of SFR EU leaders expected to hold summit on Feb 7-8 in Brussels - EU diplomats Good Spanish auction ECB's Draghi:  EU treaty enshrines ECB's independence Italy government calls confidence vote on 33 bln austerity package for Friday in Lower House Euro zone December flash composite PMI  47.9 vs 47 in November, stronger than Reuters' median forecast of 46.5 UK November retail sales -0.4% m/m, +0.7% y/y vs median forecasts -0.3%, +0.3% respectively UK December manufacturing order book balance -23 vs -19 in November, worse than median forecast of -21 China nearing end of period of high economic growth - Yu Bin China's epic hangover begins - AEP at The Telegraph Main feature of this morning's trade has been the firming of swissy, the SNB deciding to keep the peg at 1.2000 for the time being.  USD/CHF down at .9440 from early .9540, EUR/CHF down at 1.2265 from early 1.2390. Buy orders now seen down at 1.2250, sell stops through 1.2220. The 200 dma lies down at 1.2198/1.2201/1.2202, depending on who you speak to :) EUR/USD up marginally at 1.2995 from early 1.2980.  Middle Eastern names seen buying early and we moved over 1.3000. Buy stops eventually tripped through 1.3020 and we got to session high 1.3037 (early reports on Forexlive had sell orders clustered 1.3035.45, and how right we were!!) News SNB had left EUR/CHF  peg at 1.2000 prompted sharp sell off in the cross, which inturn dragged EUR/USD lower. Real money selling was noted again this morning and they were said to have whacked the single currency particularly hard around 1.2990/00.  A decent Spanish auction and talk of a large 1.3000 option expiry later today have however helped provide support. Reports buy orders now clustered 1.2945/55, sell stops through 1.2940.  Large option interest down at 1.2900. Cable firmer at 1.5505 from early 1.5435, supported by the heavy EUR/GBP cross. UK clearer and large US commercial bank notable sellers of the cross this morning.  We're down at .8380 from early .8405. USD/JPY sits at 77.90, very marginally easier from early 78.05. We remain ostensibly narrow rangebound in this pairing.