Traders report that there had been lots of buying of short-dated downside protection in EUR/CHF (bearish bets) in the last few sessions in the run-up to the SNB meeting, hoping the SNB would soften their tone on keeping the franc weak. Oops…
Beware a squeeze higher should the SNB come in and inflict pain on these fresh shorts.
We trade at 1.4622, having been as high as 1.4230 after the SNB held rates steady and said they would continue to keep the franc from strengthening.
