By FXEmpire.com
The EUR/CHF pair had another spike during the Friday session, only to fall back to the previous consolidation levels. The Swiss National Bank has implemented a “floor” of 1.20 in this market, and as a result we know that selling simply isn’t possible at this point. Without a doubt, if the market falls below that level, there will be massive intervention. In fact, there is a lot of speculation that the SNB is already buying this pair when it starts to dip.
The pair does pay a positive swap, so we have a small position on the long side. Think of it like a dividend stock: You are making money for being very patient. Only in this market, you have a massive backstop below.
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Originally posted here
