There was, naturally, quite a lot of attention on the return of EUR/CHF to 1.20 on Friday, most of if, naturally again, frivolous. On a return basis, anyone who didn’t care about mark-to-market would have been back in the black in the mid-1.19s thanks to carry, but that didn’t stop people like me joining in the frivolity, tweeting the market may have an issue working through the 1.20005 offer for 20 yards. It shows though, how much the event is embedded in the market’s psyche that we are commenting about it.
The Swiss National Bank continued to intervene in foreign exchange markets in 2016 with the intention of averting Swiss franc strength.
According to the central bank’s latest annual report, it bought a total of CHF 67.1 billion in foreign currency, from CHF 86.1 billion in 2015. The latter included intervention in the two weeks ahead of the central bank removing the EUR/CHF floor on January 15, 2015.
The SNB’s reported a profit of CHF 24.5 billion in 2016, following a loss of CHF 23.3 billion in the previous year.