Testing how far the SNB is prepared to let the Swiss franc appreciate has been a familiar characteristic of the FX market ever since the central bank abandoned its CHF1.20 target floor against the euro back in January 2015. The monetary authority’s absolute pain threshold remains unclear but recent intervention activity suggests that, at least for now, a move below parity would be staunchly resisted. However, there is increasing speculation that the SNB has accepted that the equilibrium level of the franc is, perhaps significantly, stronger than it previously thought and investors will be looking for any clues that ... (full story)