Reuters called the SNB regarding intervention but got the standard “no comment”.
One rumor making the wounds is that the SNB used a new tactic in today’s fruitless endeavor: The supposedly bought EUR/CHF on the banks’ portals, rather than entering the interbank market via EBS or Reuters Dealing.That may have given them a few seconds of anonymity and made it look like the market, and not the SNB, was buying the buying…
Another rumor making the rounds is that it was not the SNB at all but a hedge fund that “spoofed” intervention… That one is illogical to me. Why push the market aggressively? If you are a buyer covering a short, you want to get them cheap…If you are an outright buyer, who the hell are you going to sell the cross to? The ECB already has hundreds of billions to go on rallies?
EUR/USD ran up to fresh session highs at 1.1989, two pips below the Monday high.
