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SNB and CHF

The SNB's Hildebrand was out today in Europe declaring the standard SNB line: that it would continue to act to counter excessive gains in the franc exchange rate. EURCHF bounced a bit on the news but then immediately collapsed back toward recent lows, suggesting that there may be more wood to chop. If the SNB really wanted to put a line in the sand at this point, it would have used language like "will not tolerate further gains" etc. So EURCHF looks like it has been given the all clear to move down toward 1.40, even if the pace may need to slow soon to prevent bouts of heavy real intervention from the SNB.