SNB intervened in the market today.

As per usual, SNB policy makers maintain their code of silence. However, dealers believe that the BIS acted on their behalf this morning and sold the CHF. The EUR/CHF aggressively moved moved from 1.5080 to 1.5240 on the US open. Not interfering in the crosses, the SNB is said to have bought large amount of USD/CHF directly. Of course this is bound to push EUR/CHF higher, but by intervening directly in the USD/CHF currency pair will appease all concerned parties. All ready this week, Trichet has stated that they are interested in a ‘strong dollar’. Intervention on their behalf is by no means a surprise. But, they way they conducted business was a shrewd move!

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell