SNB will maintain its franc-euro exchange floor

SNB, the Swiss bank will defend its minimum Swiss franc-euro exchange rate at 1.20. The speculation over the possible increase of the exchange rate floor had appeared before the official announcement and increased the number of short positions in currency. Following the official report on no change in the exchange rate floor, the Swiss franc increased as investors tried to cover their short positions in currency. The pair EUR/CHF traded at 1.2276 in recent session, compared to 1.24 francs in the prior session.