64% of jolly economists in a Bloomberg survey say that they expect the 1.20 cap to remain until 2015. Four of the eleven surveyed said they see the cap lifted in 2014 and 2 saw the peg gone in 2016 and 2017.
Head of research at Credito Valtellinese, Attilio Bertini, says;
In My opinion the euro-swiss cap at 1.20 is useless already today and the SNB will leave it as a future backstop
So far the SNB hasn’t intervened in the currency (that we know of) but they may be forced into action as the ECB try to counter the falling inflation risk in Europe. I would expect the pair to fall if and when they do remove the peg as longs who were happy to trade with the SNB as a back stop have their security removed and look to take profit.
