The pair just can't stop grabbing the spotlight 31 July
As I highlighted in my session wrap we've seen the pair in lively mood again this morning with natural CHF sellers taking full advantage of the retreat to 1.1335 after 1.1410 highs.
We've been back up to 1.1395 as USDCHF took advantage of USD demand to post 0.9713 from 0.9675 both pairs are in retreat once again as NA desk step into the fray.
News out of note were the SNB Q2 and H1 results and the forex losses incurred. While EURCHF has been in steady ascent all year don't forget that USDCHF has been down to 0.9450 from 1.0300 and the SNB hold 35% of reserves in USD and will have been buying the pair to help keep EURCHF underpinned.
It's considered that a 1% fall in USDCHF costs the SNB around CHF 2.5bln while it gains around CHF 3bln for every 1% rise in EURCHF.
CHF still "significantly overvalued" ? It's all relative.
USDCHF
EURCHF
