Credit Suisse says SNB could act at parity

Research from Credit Suisse suggests CHF shorts are cleared out:

"In the post meeting press conference, SNB stressed that it does not see real alternatives to negative interest rates in the current environment. At the same time it remains ready to intervene in FX if necessary, although markets may continue to question SNB's willingness to expand its balance sheet.

We believe SNB has scope to lower interest rates further and it would use it in response to a challenge to the Swiss franc. However, this may not be an immediate pre-emptive move. We believe levels closer to parity on EURCHF would trigger such reaction - similarly ad-hoc interventions may also be only triggered at lower, closer to parity, EURCHF levels.

We remain bearish on CHF vs. both EUR and the USD and we view the current setback as temporary. This is mainly as we judge the negative rates as sufficiently painful."

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