But these are less than traditional times, given the SNB’s three-month old peg to the euro.
The franc has had a strong morning, partially as a result of the death of North Korean leader Kim and partially on follow-through on Thursday’s failure of the SNB to raise the peg as so many specs had anticipated.
1.2125/30 is critical support for EUR/CHF. That is the SNB’s line in the sand, a trip wire ahead of 1.20. They have been buyers on dips to 1.2125 on the last several tests of that level. Large stops are seen in the 1.2110/15 area.
