Archived IMT (2010.07.29)

SWISS FRANC SOARS on reports that the Swiss National Bank is dumping EURCHF, bailing out of its money-losing interventions, in which it bought EURCHF over past 18 months. The SNB tried defending EURCHF by buying in Q1 2009 at 1.50, followed by more purchases at 1.45, then at 1.43, 1.40 and even at 1.35. Now it seems the SNB is cutting its losses as it continues to close these positions well below the buying levels, thereby, helping CHF against EUR and across the board. Since USD is the days biggest loser, USDCHF is nearing Jan lows of 1.0380s.