SNB intervened in the market today.

As per usual, SNB policy makers maintain their code of silence. However, dealers believe that the BIS acted on their behalf this morning and sold the CHF. The EUR/CHF aggressively moved moved from 1.5080 to 1.5240 on the US open. Not interfering in the crosses, the SNB is said to have bought large amount of USD/CHF directly. Of course this is bound to push EUR/CHF higher, but by intervening directly in the USD/CHF currency pair will appease all concerned parties. All ready this week, Trichet has stated that they are interested in a ‘strong dollar’. Intervention on their behalf is by no means a surprise. But, they way they conducted business was a shrewd move!

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