The CHF’s overwhleming strenght weighed down on the currency yesterday once again. THis took the CHF lower to 1.0727 versus the USD from its open at 1.0661. Are traders getting scared that the Swiss National Bank would finally make real its threats on currency intervention?
It’s hard to say where the USDCHF got its fuel to head upwards yesterday give Switzerland’s empty economic calendar. Could it be the fear of SNB currency intervention or was it merely a bullish correction from the CHF’s recent strength? Still, the dominating market sentiment is poised towards risk taking and if more and more “less bad” data comes out, we might see the USDCHF head to new lows.