By FXEmpire.com
EUR/CHF continues to be dead money for the most part. The Swiss have put in place a “floor” in this market of 1.20, and the market is respecting it so far. If the pair does manage to fall below that level, the Swiss National Bank is very likely to get involved and intervene in this pair. Truth be told, there is nothing to suggest that they aren’t already going long this market from time to time in order to keep the pair just above the 1.20 level.
The only direction we can trade in this environment is long, and as a result we have a small position in this pair on the buy side. The trade collects a very small swap daily, so in a sense this is a yield play. Worst case scenario – we break below 1.20 and the SNB sends my trade up much higher via intervention.
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Originally posted here
