Archived IMT (2009.08.24)

The much scrutinized EURCHF pair came under unusual pressure on Friday without much noise from the Swiss National Bank, which intervened at 4 different occasions over tha last 5 months in order to prevent rapid CHF strength. EURCHF fell to 5 week low at 1.5133 before rebounding on positive comments from ECB officials. What was initially a line in the sand at the 1.5 level has become a preferred support near 1.5150. This coincides with the 200-day MA. Any EUR-negative dynamics should be carefully watched for potential action from the SNB. Ashraf is on VACATION so IMTs and Tweets will be less frequent than usual.