Yes folks, time for the talk to do the rounds again given the ECB’s possible monetary easing and the SNB accepting that the only tool in their box is the EURCHF floor at 1.20
Talk on the streets again of raising it to 1.25 or 1.30
Helps to explain the rise in CHF pairs this morning.
Roubini Global Economics yesterday put out an article quoting SNB sources suggesting it might be a good time for them to prepare for any ECB rate cuts/easing which would increase pressure on the Euro toward the 1.2000 floor. Not exactly unique/original thinking but these are fragile markets and herding instinct is strong.
ECB meet on June 5th and the SNB on the 19th so it gives them plenty of time to gauge the fallout before being forced to act, but it will certainly suit the Swiss to have the market help them in lifting the price prior to avoid the need for intervention.
USDCHF has chewed through offers between 0.8940-50 and now faces more at 0.8965 , 0.8985 and 0.9000. We would see nearly always expect to see USDCHF rising when EURUSD falls but this time EURCHF is giving it some help.
EURCHF still trying to get past strong offers at 1.2225-35 then 1.2250 and the talismatic 1.2280
Good news for all you patient CHF sellers but I’m not conceding the race just yet! Still short at 1.2208 from the other day and will see what transpires around here given that we’ve been in this situation before.