EUR/CHF trades below 1.2010 this morning, no doubt being closely managed by the SNB. They must be taking on huge sums at these levels as Investors from the periphery of Europe look for safe-harbors. If the Swiss are willing to give them a safe harbor, Greeks, Spaniards and Italians worried about their savings are willing to make use of it.
The Swiss can keep the printing presses running as long as they like and buy euros with the proceeds. The question is, how much FX risk are they willing to endure? We may find out in the days ahead.
