Franc Retreats as SNB Signals Readiness to Defend 0.90 EUR/CHF Level

Credit Agricole suggests that without SNB intervention, the franc would have seen stronger gains. The currency pair EUR/CHF fell to a low of 0.9025 before recovering, with the 0.90 level being a significant psychological barrier.

The SNB is closely monitoring the franc's strength, which is at its highest real basis since 2011. While direct intervention is unconfirmed, preserving the 0.90 level in EUR/CHF could signal the SNB's stance, especially given potential US administration sensitivities.

The article also notes mixed market reactions to the US-Iran conflict, with less widespread panic than might be expected.