If the SNB informs you they believe the CHF is overvalued, you would not believe USDCHF hitting an 8 month coming 1.08 EURCHF has been falling into approach the 1.08 degree, which we believe was a line in the sand to the SNB before.

Obviously if the SNB intervene to block the CHF enjoying will be based on the speed of this EURCHF move but we're discovering that pace is growing more and more associated with attaining this 1.08 degree. The SNB does not hide from the truth that they've been intervening since removing the floor. The SNB's VP Fritz Zurbruegg said ”We do not have a fixed limitation for developing the balance sheet; it is a corollary of our currency market interventions”. Sight deposits, a measure of intervention, have risen by 10.8% because the beginning of the year.

We anticipate EURCHF to stay in a 1.08-1.10 range, whilst USD strength must push USDCHF towards 1.01 in forthcoming weeks.