SNB defended the 1.20 by cuting rates!
I wrote before two days, that SNB’s peg is in danger and that SNB must be on alert! Whell, SNB defended the peg today by cuting rates at negative (-0,25%). The pair is literally jumped 90 pips in 10 minutes, but I didn’t want to write anything before it’s settles down. Celebration didn’t last long and the pair is pulled back to 1.2030 an hour latter. What next and is that enough for SNB to keep the pair higher from the floor? SNB’s Jordan says that they had to intervene in FX markets in last few days and that SNB is ready to take more measures if required. Hm, I hope that’s enough for the market players, but be aware of the possible monetary policy change as well? Euro still looking bearish all over the market and we can see, that there is no enough streght here at EUR/CHF for now. But, let’s wait for a while and see what will happen next. 1.2100 could be the first resistance, 1.2130 and 1.2180 next, if the pair manage to bounce up again!? If euro can’t bounce again, the peg/floor will be in danger.