Our friend George Dorgan from SNB.CHF.com ,who correctly saw the SNB removing the EURCHF 1.2000 floor has raised his eyebrows this morning at our reporting of the rumoured 1.05-1.10 new target

I and others here have been reporting market chatter on the “soft” floor explaining the SNB smoothing operations and the bid tone to CHF pairs.Talk on the street currently is more about the idea that they may go instead for a Singapore- style basket, a notion which I did also in fact post about on the 27 Jan here

The various merits/faultlines of another cap have been highlighted and yes it does seem churlish for the SNB to go down that path again. So a basket case ( pun intended) does carry some kudos and gives the SNB more flexibility, particularly on USDCHF which prior to their surprise action had become just a mirror of EURUSD that I had highlighted on many a occasion.

Allowing USDCHF a bit more of a range will help the SNB manage the Swiss Franc NEER ( nominal effective exchange rate) within an undisclosed band .

Either way expect the rumour mill to be working overtime and CHF pairs remaining volatile

George – your comments/view will be most welcome and I will post them up here

Update:

Here ya go.. From George.. Thank you my friend

At my presentation at the CFA society, I judged that the floor would break and the SNB would go for 1.10. http://snbchf.com/chf/george-d…
At a time in September 2014, EUR/USD was 1.32.

I think that EUR/CHF 1.10 is too high now because:
1) I got surprised by excessive oil price weakness and excessive dollar strength. For me the dollar is only temporarily stronger. Euro and CHF will recover together with the oil price.
2) I got surprised by the extend of Draghi’s QE and the massive inflows in CHF (70 bln in only one month) . So was the SNB. http://snbchf.com/snb/history-…
3) I got surprised by the lack of scruples in Greece.

The SNB will possibly sell USD (realize profits!) and buy EUR. Balance sheet data shows that they were steadily buying yen (despite having more and more unrealized losses).
Remember that the SNB is an FX trader like you guys are! It borrows money from its Swiss family (loans are called sight deposits) and trades with it. In the English-speaking press the Swiss seem to be quite relaxed with that. But the German-speaking Swiss press is not happy at all. Use Google translator and think. Best German-speaking site: http://insideparadeplatz.ch/