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EUR/CHF brought to light, 1.2000 is key - Societe Generale

FXStreet (Guatemala) - EUR/CHF has been quietly changing in the background of key events and Kit Juckes, Global Head of Currency Strategy at Societe Generale suggested that EUR/CHF options no longer rule out a test of the floor.

Key Quotes:

"The SNB policy status quo heightens the contrast with the ECB's commitment to do more."

"Switzerland's (huge) current account surplus and tensions in Russia support the franc and a test of the EUR/CHF 1.20 floor is increasingly likely. The SNB will only act when it has no choice but to do so, but there's every chance that will happen."

"An analysis of EUR/CHF options shows that this market reckons that volatility risk is now possible on both sides of the FX rate. Given its current level, options no longer rule out a move towards 1.20."

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