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!
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