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Not so sure about this. #1 priority of SNB is still inflation control.
Apparently hedgfunds are placing bets against the SNB
See WJS "Hedge Funds Plot Assault on Swiss Franc Ceiling"
The fx market is just too big. Hildebrand cannot accumulate
unlimited amounts of EUR although that's what the headlines
want you to believe. Once the SNB balance sheet looks
really ugly the headlines will change and political pressure
will kick in.
I'm planning to do some small buying next time eur/chf reaches its recent lows. I'm not certain the SNB can keep the CHF from rising forever, but I'm willing to bet they can do it for some period of time.
Not sure about eur/chf, but I can tell CHF is in trouble against USD. Reason: A good chunk of money stolen during US (and now the Wolrd) economy collapse found its way into Swiss banks. Now that the bottom is falling off inside the Euro zone, the thieves are getting nervous and bringing the money back to the safe keepers in USA, thus the fall of CHF. See the weekly chart attached. The CHF has been high for too long piling up scare and stolen money that is now leaving Swiss.
The bottom line, CHF will not, and does not have the capacity, to remain the piggy bank for the rest of the world, so watch out!
SNB will defend the 1.20 level. A test will come with the end of the Greek drama.
There were some rumors of moving the level to 1.25 (which would be a bad R/R).
This interview with the Swiss Finance Minister could slow down this speculations. (Don't know why she said that, as she has very hard reelections coming up in a few weeks).
Interesting how CHF will react on Monday.