The lows touched just under 1.1550
Could you imagine if it were an SNB official saying that? The dip would be almost free fall like instead. The pair is recovering now though, but the kind of language by Maurer is indeed contradictory to what the SNB has been preaching all this while.
I doubt Maurer's comments would have any long-term repercussions to the swissie, but it does pose a bit of uncertainty when it comes to the level of comfort in EUR/CHF. The SNB has been known to intervene and has reiterated that they will continue to do so in order to prevent the swissie from being 'highly valued'.
But if Swiss officials are starting to talk such a rhetoric, you have to wonder is there some similar thinking along these lines at the SNB as well? Currently, we're yet to have evidence of that. But only time will tell.
The only sure thing is that once the SNB does decide to change its language on the swissie to be less than 'highly valued', and if EUR/CHF isn't anywhere near 1.20, expect the swissie to jump.
