It seems like everyday the market is left asking if either the Bank of Japan or Swiss National Bank are intervening in their currency. While yesterday’s early forex market action showed a “questionable” move in JPY, the Swiss franc (CHF) actually stole the show throughout the US session as it weakened tremendously.
Part of this movement can be attributed to reduced risk-aversion in the market and thus lower demand for safe-havens; but also affecting the Swissie were rumors that the SNB may be considering a peg to the Euro in order to halt these massive inflows of buying that are strengthening the Franc to undesirable levels.
This morning, a bull pennant pattern has emerged in the EUR/CHF which suggests that the CHF could weaken further to 1.11 vs. EUR. Stay tuned!