Euro to Test SNB's Resolve

The SNB's message over the past months has been consistent - it will fight a stronger Swiss franc. But the market proved to be a mighty adversary for the SNB. Since the EURCHF broke the 1.5 level on 12/18/2009, the SNB attempts for intervention (see chart) were met with massive opposition.

As the EURCHF once again approaches "intervention territory", it remains to be seen whether the SNB will take another shot at intervention or if it finally decided that fighting a weaker euro is a lost cause.

The Chart below points out recent intervention attempts:
















-forexRoy