By CountingPips
The Euro-Swiss Franc pair this morning broke through the Swiss National Bank’s currency floor of 1.20 for the first time since September 2011, touching a low of 1.1996 before bouncing higher.
The Swiss National Bank (SNB) has vowed to defend their floor and keep the pair above 1.20 to offset too much strength in the “overvalued” franc (too much strength hurts Swiss exports). The market views the franc as a safe haven currency and money pours into this currency when a crisis arises such as the eurozone debt crisis.
Traders will be watching if the SNB will take decisive action to kill the franc’s strength against the euro through more intervention in upcoming sessions.
The EUR/CHF falling below 1.20 in today’s forex market action.
