Just out on the wires and going some way to explain the euro demand so far this morning
EURCHF 1.0410 off the 1.0428 highs after lows of 1.0312 in Asia
- SNB has intervened in a difficult situation
- will not comment on details
- If Greece does leave the Eurozone then questions about the union must be asked
- Greek default would be extremely difficult situation for Greek banks
- SNB is not unprepared for Grexit
- US economic recovery could be stronger
The SNB will probably have been soaking up a few euros in Asia too in order to prevent further losses in thin conditions
We know they're between a rock and a hard place and have been in the market previously to "smooth" since the Jan 15 debacle but this very public stance/intervention will be intended to frighten a few traders off or at least think twice.
Update:
- SNB has always said it would be active if need be. The week-end's events justified such action
- will keep a close eye on Greek situation and be ready to intervene if need be
- SNB structure set up well to take decisions
EURCHF lower again at 1.0390, USDCHF also off its highs at 0.9385
EURUSD steady-ish at 1.1070
SNB boss not be a happy man right now
