The pair is in retreat after last week's surge, helped by the SNB
Currently 1.0976 after highs into 1.1050 last week. The rally was attributed to the SNB and that would appear to be confirmed by the rise in domestic sight deposits with them to CHF 398.2bln last week from 395.06 bln the previous week
A rise in sight deposits can indicate central bank intervention and today this appears to be a case of buy rumour sell fact
Each SNB intervention is met with similar reaction with traders happy to take profit on short CHF positions, while being aware that the central bank will be in again at some point, reducing the level of retreat.
USDCHF similarly finding it hard to rally far from 0.9667 lows earlier having capped into 0.9800 last week
EURCHF at 1.1000 has been a target area for traders and Swiss officials alike, an area that I reported on back in February, and a level that economic minister Shneider-Amman highlighted in August
