Oops, I used that dreaded C word again. Sorry
But further to my earlier post on CHF pairs we did indeed get a quick shove through those key levels of 0.8900 and 1.0000 to post 0.8927 and 1.0029 in a rush before retreating
Bids in the dips though has limited the drop and we’re still poised for another move higher as speculation increases that the SNB are doing a bit of smoothing, money-market or otherwise juding by the rise in sight deposits to cap the recent CHF appreciation
Last week I reported that 1.1000 was being touted around as a target area/manageable level by Swiss officials and this latest shove higher is starting to add some kudos to that argument with traders rushing to get on board for fear of missing out.
Many though will have been more than bitten by the SNB fallout and not be quite so inclined to jump in just yet.
Much will depend on the fate of the euro from here on in but some kind of SNB target can not be ruled out.
Update:
Lo and behold both pairs now posting session highs again at 0.8932 and 1.0044 from 0.8890 and 0.9995
