EUR/CHF again managed to rise above 1.1100 after reaching the bottom of 1.1062 earlier in the day and tested the bottom of last week at 1.1057. The price is currently holding more than 1.1000, and here is danger, for those who expect the franc's further appreciation.
The pair is currently trading at the levels of July 2017, and this is definitely going to be the "bells" for the Swiss National Bank. If the franc continues to rise, the bank will surely intervene, at times, to prevent the franc's excessive and rapid appreciation.
This is the bank's only approach to tackling the market sentiment in terms of trade and geopolitical tensions. This, coupled with a deterioration in global economic performance, leads to avoiding risky assets and shifting to safe heavens, and the franc is one of them. In this way, the bank may slow the tolerable appreciation of the currency if tensions escalate too much, but the bank will not be in a position to completely oppose sentiment. With the gradual approach of the 1.1000 zone, market participants are becoming more cautious about possible intervention by the SNB. So they're more likely to get their profits sooner. This is the most logical explanation for what is happening with the franc now, given that we are approaching the end-of-month changes in cash flows.
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