EUR/CHF is trading markedly lower on the day, presently down at 1.5320 compared to a European opening up around 1.5420. The market seems content to test the SNB’s resolve. So brave, so brave!!!
In an interview in todays Financial Times, SNB head Roth basically said that the bank has made a commitment, and has a strategy, to ensure the swiss franc doesn’t strengthen. On that basis, still gotta think downside for EUR/CHF has to be relatively limited.
Supports for cross now seen at 1.5315, 1.5285/90, 1.5265 and 1.5195. There’s still a feeling about, that SNB will draw a line in the sand down around 1.5180/00.
At writing comments from SNB spokesman have hit the wires and helped lift EUR/CHF. The official states that measures announced on Thursday are being implemented. Says CHF 4.75 bln covered bond deal between big banks, regional banks to be closed by end of month. Declines comment on whether SNB is buying covered bonds itself. Just seeing those three letters SNB on the wires is enough to send the swissy bulls scurrying.
