It took me a while…
…but it finally dawned on me where the CHF strength of recent days is coming from.
Having moved reflexively for so many months in opposition to the euro as European sovereign debt has dominated the headlines, it is finding a fresh catalyst from a rapidly morphing democracy push on the Middle East and North Africa, I think.
The Tunisian revolution got the ball rolling while riots in Egypt are the largest in a generation.
The CHF tends to be the safe-haven of choice for the elites, and elites across the Middle East are likely moving what they can into the safest possible harbors in case they are forced to flee their perches.
EUR/CHF is at 1.2912 at the moment, up from 1.2875 earlier in the day.
I may not be the brightest bunny in the warren but I get there eventually…