The 1.5000/50 area is presumed by many to be the Swiss National Bank’s line in the sand for EUR/CHF. As part of their non-standard monetary measures, they’ve sought to weaken the Swiss franc via intervention, Their efforts have been scatter-shot, however.
Their initial foray into the market was a smashing success, squeezing out structural Swiss franc longs but since then they have kept a rather low profile. There have been a few reports of modest bidding through the BIS over the months but the efforts have been far from strenuous.
Traders are getting antsy and are probing the downside in EUR/CHF today to test the SNB’s resolve. Price held an earlier probe to the 1.5050 level and trade now at 1.5065. No sign yet of the cavalry, however.
