EUR/CHF, CHF/JPY flows: SNB Schlegel reiterates increased readiness to intervene

While accepting that real appreciate is clearly less than nominal, SNB chairman Schlegel at an event in Bern reiterates again the Bank’s raised readiness to intervene to deal with overvaluation pressure due to the Middle East conflict.

This pits the CHF on the opposite side of the fence to the yen in terms of valuation and central bank desired direction, though as yet CHF/JPY has managed little other than some stalling out of the long-term uptrend in recent times. 

The cross move is really rather stretched on a long-term trend basis but has remained a tough one to bet against without some impetus or sharper trigger.