CHF

EURO-SWISS: One trader suggesting that the SNB is not linked to the
reported large bid at Chf1.4005, saying it is linked to protection
of the barrier at Chf1.4000. Additional talk suggests there is at least
a 'yard' (E1bln) of stops from Chf1.4000 down to Chf1.3980. Asian
traders earlier had suggested that sovereign demand would appear below
Chf1.4000.

The Swiss franc depreciated vis--vis the U.S. dollar today as the greenback tested offers around the CHF 1.0945 level and was supported around the CHF 1.0840 level. Data released this weekend confirmed the Swiss National Bank has spent more than CHF 40 billion to buy euro this year with CHF 30.2 billion in franc sales in the first quarter alone. Data Swiss National Bank President Hildebrand last week said the SNB will continue to counter any excessive gains of the franc, noting there would be a negative impact if the franc appreciates sharply due to its role as a safe haven currency.

Hildebrand noted the SNB will not allow such a development to turn into a new deflation hazard and is acting decisively to prevent an excessive appreciation. Hildebrand also called on European leaders to conclude negotiations over Greeces aid package rapidly. April consumer price inflation data will be released on Thursday. U.S. dollar offers are cited around the CHF 1.0930 level. The euro moved lower vis--vis the Swiss franc as the single currency tested bids around the CHF 1.4320 level while the British pound appreciated vis--vis the Swiss franc and tested offers around the CHF 1.6595 level.

EES had a favorite group of pairs EUR/USD, EUR/CHF, USD/CHF. The Swiss Franc used to mean something it meant finance, the old guard. The CHF was backed 40% by physical gold. Now, the SNB will not allow the CHF to appreciate because it would have a negative impact as its safe haven currency status. Whether thats true or not, we have decided to stop trading the CHF. With the volatility in the EUR and USD due to the Greek crisis, the uselessness of trading the CHF is highlighted even more. Trading multiple pairs can have the advantage in a volatile market of hedging in and out of positions by trading more than 1 pair that share the same currency. However, because the EUR/CHF did not move by more than 10 pips in the last 20 hours, including EUR/CHF in any strategy is useless.

There is a trade here, when the EUR/CHF is revalued the move takes time and traders can jump on the trend and ride the movement. A trend following system could be loaded to capture this trend when it happens. Or you could simply look at the chart and see it breaking out of its controlled trading bands.

Elite E Services is an electronic boutique brokerage specializing in currency trading, intelligence, and technology surrounding foreign exchange markets. EES offers FX trading systems for clients and investors, FX consulting, technology and tools for trading, system development, custom programming, and FX solutions for businesses.

@all
and what about usdChf???

Im long from 1,1120...hope to see it rising soon...

@Callum: at 1.43+

I agree,
at 1.40 we can hope BNS reaction, so it's a good level to enter long short term eurchf