Data released by the SNB a short while ago which suggests that they’ve intervened to defend the 1.2000 EURCHF cap
Sight deposits are the amount of cash the commercial banks hold with the SNB and in the past when the SNB have intervened to defend the cap lender’s deposits have been credited with the amount of CHF sold but it’s not a 1:1 correlation. Indeed as our friend George Dorgan highlights here the opposite has also been true
USDCHF and EURCHF both have had a small rally on the data to 0.9885 and 1.2036 but dropping back a little as I type
Ful SNB release here
On Dec 18 the central bank surprised the markets by introducing a negative interest rate on these sight deposits effective Jan 22
Jordan – SNB still propping up EURCHF
