2026-03-02 12:29:00
It looks like we’re finally getting a feel of where the SNB wants to draw the line next in EUR/CHF. This has been a key debate since the start of the year and especially more so after the pair fell below the previous line in the sand around 0.9200. That led to the hot question just before the whole US-Iran conflict started up.
For some backdrop to the franc and why the SNB looks to be wanting to draw a line, you can check out this post from last week: US-Iran tensions most untimely for the SNB
EUR/CHF hourly chart
EUR/CHF fell to fresh lows of near 0.9020 at the market open earlier today but then kept around 0.9040-60 mostly after. But after the SNB comments here, the pair has now jumped back up to above 0.9100. Even USD/CHF is now up over 1% to 0.7770 after having traded near flat at the start of European morning trade. Coincidence? Perhaps not.
I would wager that the Swiss central bank did step into the market today and they may very well have had to do it. Otherwise, it would be tough not to think that the franc currency would not have strengthened given the latest developments. Yes, the dollar may have the petrodollar resurgence trade going for it. However, the franc has been the go-to currency for traders in recent negative risk events. That especially as the yen has also fallen out of favour since October last year.
The main question now is how far is the SNB willing to go in fighting market sentiment should Middle East tensions play out for much longer? It’s only the first trading day and we’re already seeing them show their hand.
A lot of the focus might be on commodities and the dollar today, but this is also one spot to take note of in the major currencies space at least.
