EUR/CHF has its sights set for 1.20, what's next?

EUR/CHF rises above 1.1900 for the first time since the removal of the floor by the SNB

It's been a long time coming - since January 2015 to be exact, but we're almost back to square one again for EUR/CHF.

The pair is now trading near the highs for the day @ 1.1907 as it breaks above the 1.1900 figure level for the first time since the SNB decided to gift the market a "pleasant" surprise.

So, what comes next after 1.2000?

The SNB has already been dialing back on intervention, and I reckon any retracement away from the 1.2000 level should not warrant too much action by the SNB unless it is a move with such a force that it threatens to derail the central bank's objectives.

For starters, expect nothing to change by the SNB in terms of guidance and language. And more importantly, don't expect any changes to come from the SNB in terms of rate-setting and monetary policy.

The SNB will continue to stay behind the ECB on the policy normalisation curve, and as long as they continue to do so then it shouldn't take out the wheels of a gradually improving economy.

Then again, they've been known to surprise us before. So, believe what you will.