EUR / CHF hit new lows for the year yesterday, but SNB still keeps price action above the 1,500 handle
EUR / CHF fell to a low of 1.0505 in day-to-day trading amid initial pressures on stocks in US trading before reversing the trend of maintaining levels of 1.0515- 30 – which has turned into a sweet spot in the pair over the past week or two.
I don’t think anyone can answer that, but just like the January 2015 incident, the longer this pent-up “floor” in EUR / CHF, the deeper the fall can be once the SNB decides to remove the carpet from the feet of the market.
That said, don’t expect the drop to be this drastic. I expect things to move more gradually as the SNB will always actively seek to smooth appreciation rather than cause unnecessary volatility.