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Eur/chf - Rare opportunity ?

  #10 (permalink)

Pula, Croatia
Trading Experience: Intermediate
Platform: NinjaTrader, Amibroker
Favorite Futures: Forex, Stocks
Posts: 7 since Aug 2011
Thanks: 11 given, 5 received

Jura View Post
But what if the SNB can't hold the price target that they've communicated? It's not like that didn't happened before, despite throwing billions at it.

Maybe I'm wrong, but these are completely different situations.

BoE tried to keep the pound from falling, which means it had to buy the GBP, so it was limited by its foreign reserves.

SNB wants to keep CHF from rising, so it needs to sell CHF and buy foreign currency. SNB can "print" unlimited amounts of CHF if it chooses.

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