We’re above 1.2300 as the Franc’s first month as a pegged currency comes to an end.
So far, so good for the Swiss National Bank.
But tomorrow we will get a sense of what the costs has been for the ECB, if any.
At 9 CET, the SNB will release their reserve figures. The smaller the increase in reserves over the last month, the better. That would suggest the SNB still has ammunition to defend the peg. A huge jump in reserves will make the market nervous, and it will suspect the SNB will not be able to maintain a rapid pace of reserve accumulation.
