Swiss Franc Crosses Remain Supported Following the SNB Intervention

EUR/CHF maintained a bid tone and traded back above the 1.5300 handle during the Asian session. The cross traded as high as 1.5365 after Wednesday’s London close as SNB intervention triggered another leg higher. USD/CHF traded above the 1.1000 handle during the move, although it has pulled back in to the mid-1.09s today. Yesterday’s SNB action coupled with bullish technical indicators should underpin the EUR/CHF downside and could see a run up to the mid-1.54s. USD/CHF is expected to hold up, although movement will be distorted by broader dollar interest. Dollar supportive comments from Japan’s Yosano have offset criticism from China and should see good USD/CHF bids in to 1.0900 and 1.0880 intra-day.