SNB Intervened again…

The Swiss National Bank intervened again on its currency. According to Bloomberg, the SNB sent an email statement: “With immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs” and “is prepared to buy foreign currency in unlimited quantities.”

Guess where the EURCHF is currently trading? 1.2023 (from 1.1015 earlier this morning, that’s around 1000 pips)… So it worked, we’ll see if it only worked on the short term (like BOJ interventions) or it has a sustained effect (what they really want). Because we have something clear, as long as traders, investors, bankers all over the world continue seeing the CHF as a reserve currency (because of the debt crisis, etc), sooner or later the market will lead to renewed franc gains, that’s how the market works.

In the meanwhile, I will wait for clearer market conditions on all CHF crosses. And as soon as I have something, I’ll let you know.

Trade Safe!

Raul Lopez
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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .