The Swiss National Bank has made it clear to the FX market that it has set more than a metaphorical line in the sand when it says it doesn’t want EUR/CHF to drop below 1.50. On Wednesday, it came wading in as the rate neared this level and sent it sharply higher to just under 1.5400. Intervention is often spoken of as futile, but that clearly isn’t always true.
In comment Commerzbank points out: “The successful action should have increased the SNB’s credibility in the market.
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