We need to be careful when listening to market rumours but the ones surrounding the Swiss Franc are getting much louder. One would think that after the non-event that was the Merkel-Sarkozy chat, the EUR would be significantly lower but it isn’t because of these EUR/CHF rumours. The market is now expecting a lower limit to be put on the EUR/CHF with some suggesting 1.20 and even others suggesting that it could be 1.25. Some of this chat is coming from well placed Swiss banks. Lots of bigger players are now furiously buying dips so the other side of this of course is that EUR/CHF will drop hard if the SNB doesn’t do as expected.