Traders report talk that the SNB is expected to be a buyer of EUR/CHF should we dip to the 1.2850 area.
There has been a clear ramp-up in the level of concern from CHF authorities in recent days, both inside the government and the central bank.
To me, it looks as though they are trying to take advantage of a shift in market sentiment versus the euro to drive home a higher EUR/CHF cross, essentially free-riding on something over which they have no control. They can then say to the market “Look, our jawboning worked…”
As the old song goes” “when you ain’t got nothin’, you got nothin’ to lose…”
