The countdown until the SNB gets to say 'I told you so'
Everyone is right about everything in markets...eventually. So while the SNB said EUR/CHF should be worth 1.20 or more, the market disagreed. They gave up and the pair crashed down but now, they are threatening to be proven right again.
EUR/CHF is trading at 1.1811 which is the highest since mid-January when the pair rose as high as 1.1831. That level is the high since the floor on the pair was removed in 2015.
Here is the weekly chart:
The driver higher today was talk of the ECB halting QE and raising the deposit rate.
It's clear the market wants normalized ECB policy and that will start to create more-positive carry for this pair over time.
How high can it go? Unfortunately, I think it's going to be a very slow grind to 1.20 but the trend is up.
