EUR/CHF Falls to 0.960 as SNB Intervention Debate Intensifies

EUR/CHF fell to 0.960 this week, far below the 1.2000 floor the SNB suddenly abandoned in 2015 but approaching what markets consider the SNB's "psychological intervention zone." The SNB has historically intervened in FX markets multiple times when EUR/CHF approached 0.95–0.96, buying euros and selling francs to restrain franc appreciation. A resumed SNB intervention would provide some technical support for the euro. The Swiss Economic Institute forecasts that if EUR/CHF remains below 0.95, Switzerland's export sector annual revenues would decline by approximately CHF 15 billion.