SNB Front Running the ECB?


The last two days have seen comparable buying of the Swiss franc (green arrows) around 10am against the Euro, which suspiciously looks like central bank intervention . Conspiracy theorists may speculate that the SNB were aware of the outcome of today’s ECB press conference (red arrow) or at least the tone adopted by Draghi  and have moved first to protect their currency from appreciating to strongly.

If this was premeditated from the SNB then it appears to have had the desired effect so far, as the pair currently trades around the level prior to yesterday’s strong bid. After Draghi’s comments earlier sent the Euro tumbling against many of its crosses, the CHF seems to have just parred the last two days gains. 

The EURCHF gained a lot of attention earlier this year when the SNB acted on the 14th Jan to remove the price ceiling on its national currency. This caused a huge move against many of it’s crosses, including the Euro which saw a drop in one day of about a third from 1.2 to 0.8.