In last 2 months was forex market very volatile, big equity moved to safe heaven currencies – CHF (mainly), JPY and another big 1 000 pips move in EUR/USD mainly thanks to Greece debt. EUR/CHF fall to level 1.00634, which is all time low for this pair, after that we saw rebound to 1.1980 and another sellof to levels 1.10, where SNB (Switzerland National Bank) start another intervention to help Switzerland export business. SNB want to keep EUR/CHF at least at 1.2000 level and is ready to buy unlimited ammount of EUR. Can this work? What will happend? Can this work? I think that in medium term exactly yes, because SNB has huge reserves to buy very big ammounts of EUR, but for longer term is not easy to answer, you know, Switzerland is small country and world is big. Last year they tryied to make an intervention and they fail, they lost allmost 40 billions dollars, but i think that now it can work, because once they say to public, that they will hold the 1.2000 line, lot of traders will start to play the game with them, because it is possible to make very big money with low risk. What will happend? I think that is very important to make an analysis of this market situation in t…
Read article
Translate to English Show original