Forex Trading News – Will the SNB intervention be sustainable or not?

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Early in the European trading hours the Swiss National Bank has intervene the currency market, pegging the EURCHF at a minimum of 1.20, as a result the pair skyrocketed to a two month high of 1.2189, while the USDCHF pair climbed to 0.8616, which consists a fifteen week high. After the noise from the intervention paused, a new debate has arisen among investors, whether the sole (SNB) action will be short-lived or will it be the solution to the continuous strengthening of the Swissy. A school of economists and investors support the view that an intervention to be successful has to be coordinated and in conjunction with some other major central banks. However, the last example of the G7 intervention on March 2011 does not give support to this view. The other side supports that the pegging of CHF with EUR will but an end to the ongoing plummeting course of the USDCHF and EURCHF. This technique finds support on the early eighties where the AUD was pegged to the USD and the USD. Currently the USDCHF is trading at 0.8615, eyeing a new high and the EURCHF is trading at 1.2043.