…from all that drinking I did with Gerry last week?
Dow Jones says UBS sees the floor on the CHF being raised from 1.20 against the euro to 1.25.
Gerry, funnily enough was touting a view at our gathering Thursday that the floor will rise to the 1.25/1.30 area.
Former Bank of England chief dealer Jim Trott sensed that the floor would ultimately fail as the SNB made a strategic error in identifying a specific level that it will be forced to defend. He found himself in a similar position in 1992 and the market won.
Moral of the story: As a central banker, never give the market a clear target to shoot for…
