hi guys,
Today I checked out EURCHF and I noticed some weird landscape on my graph, seems like the EURCHF plunged, then some whooping rally shot the pair up like uh… 200 pips. The move was massive, was that another SNB intervention? or anything?
Something happened during the asian session that stopped out my GBP/CHF trade. I think it was the SNB - something about the Swiss wanting to get at Germany after the Germans criticised them for allowing people to avoid tax in swiss bank accounts - at least that is what the news alerts in dealbook360 said.
Here are the quotes from fxstreet:
Still no confirmation of SNB action
Fri, Feb 5 2010, 03:28 GMT
www. forexlive .com
Related NewsI’ve spoken with a couple of traders but as yet have no official confirmation that the Swiss National Bank are awake at 4am in the morning in Zurich, terrorising traders on the EBS. I certainly hope they were in the market because otherwise there’s gonna be a hell of a stink! USD/CHF is at 1.0740.
Confirmation that SNB was involved in selling CHF earlier
Fri, Feb 5 2010, 05:17 GMT
www. forexlive .com
Related NewsThat’s across the Reuters newswires and would seem to confirm what we said over an hour ago that the SNB bought EUR/CHF through the EBS at around the 1.4620 level.
Forexfight!
Yes, rumor is SNB intervened against the EUR. When trading CHF there’s a few things that are important to understand about the Swiss National Bank, Switzerland’s central bank.
This information is from the book “Currency Trading for Dummies”, I’m quoting & paraphrasing a section from page 89.
[B][I]Switzerland conducts about 80% of its foreign trade with the other EU-zone countries. When it comes to the value of the CHF, the Swiss are most concerned with its level against the EUR as opposed to the USD.
The SNB, the Swiss central bank gets involved in the forex market only when the CHF is too strong or too weak.
If the CHF is too weak it can import inflation (higher CHF prices for the same goods), upsetting the SNB’s carefully laid plans to tame inflation.
If the CHF is too strong, it can hurt Swiss exports, (more euros needed to buy the same Swiss goods).[/I][/B]
SNB intervention is part of trading, Switzerland is a small county and SNB does what it needs to do to protect its national interest. 
The EUR/CHF is approaching the same number that it bounced from twice now (1.4640).
It will be interesting to see if it happens a third time.
I think Imma open the demo, and place a long… 
You got it… bounced right off the 1.4645 - 4648 area, hope you went long
have a good weekend…