The Swiss National Bank Is Big Enough To Maintain The CHF/EUR Rate

By Emil Mark: Since September 2011 the Swiss franc has lost a large portion of its appeal as a safe haven currency. The pledge of the Swiss National bank to defend the 1.20 floor it pegged the franc against the euro was tested several times by the market and survived.

By Scott Krisiloff:The Swiss Franc (CHF) is trading sharply lower today against the dollar on news that the Swiss National Bank is considering a temporary peg of the currency against the Euro. However, the move shouldn't be too surprising to the market as the SNB has been trying to manage the CHF/EUR exchange rate aggressively for the past several years.

By Dr. Duru: The Swiss franc has had a floor against the euro set at 1.20 for about 15 months. During that time, there was a stretch of about five months where EUR/CHF traded right on top of that floor. Traders never made a strong attempt to test the resolve of the Swiss National Bank (SNB). Based on trading over the past four months, I think that test will not come anytime soon. Indeed, it looks like it is time to get more aggressively bullish on EUR/CHF.

Via Pictet,

By Scott Sumner: Lars Christensen recently sent me the following report from the Swiss National Bank: The current massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development.

ByRichard Cox:This year has seen significant downside move in the Swiss Franc (CHF), after major declines in volatility for the second half of last year. Valuation flatlines in currency pairs like the EUR/CHF are rarely seen, and tend to be preceded by substantial spikes in volatility once market indecision abates (classic consolidation price behavior).

By Tom Lydon: An exchange traded fund that tracks the movements of the Swiss franc versus the dollar has become less desirable as a safe-haven asset after the Swiss National Bank pegged the currency to the euro currency. Now, currency traders are worried that the central bank may take further actions in weakening the franc.

By Zecco: By Paul Quintaro Tuesday morning saw relatively large moves in several currency pairs, as the CHF/EUR spiked sharply lower while he USD/CHF moved higher. Unconfirmed chatter had been circulating that the Swiss National Bank (SNB) was considering raising its euro-to-franc peg further, setting it to 1.25 up from the previous 1.20.