Commerzbank's Michael Pfister discusses the Swiss National Bank's (SNB) potential intervention in the EUR/CHF currency pair. The report suggests that the SNB is likely to tolerate levels below 0.92, given the current market dynamics and the absence of significant appreciation in the Swiss Franc. The analysis indicates that unless there is a stronger and faster appreciation, intervention is not expected.

SNB's stance on EUR-CHF levels

"I am not suggesting that the SNB will stop intervening altogether. There are currently just no reasons for the SNB to intervene more strongly. This would probably require a significantly stronger and faster appreciation."

"If the appreciation accelerates and EUR-CHF targets 0.91 or below, discussions about intervention are likely to intensify again. Until then, decision-makers are likely to hope that the problem will resolve itself."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)