The CHF has been the market’s preferred hiding place in times of trouble for the entirety of the financial crisis. Now that the SNB has pledged to spend unlimited amounts on intervention to fix the CHF at now less than 1.20 EUR/CHF, where does the market turn?
That turns the focus toward the JPY. It ain’t a great safe-haven, with Japan being the most indebted major country on the globe, but it is the only game in town. The MOF’s job just got a whole lot harder….
USD/JPY trades now at 77.50.
