Yesterday saw the BIS selling the EUR/CHF cross above 1.5400, today they’ve been seen selling above 1.5300. The cross is presently down at 1.5285 having opened in Europe today up around 1.5335.
Now we know the BIS was an active buyer of the cross just ahead of the SNB announcement that they were going to intervene to actively weaken the swissy. From that, and knowing how the world works, one can probably surmise that the boys in Zurich are more than willing to tip the wink to the boys in Basle as to their likely plans.
Call me stupid (and a lot of people do), but that would tend to suggest (to me anyway) that imminent SNB intervention around current levels isn’t very likely. Still some people touting 1.5180/00 as a possible line in the sand where the SNB might come back in, while others feel the SNB won’t bother turning up again till the 1.5000 area. Ummm, interesting stuff, and dangerous too!!!
