- The moves follow SNB moving alongside consensus expectations at their rate decision; however there were some outside bets that the SNB could take additional action after the announcements from Credit Suisse and UBS on their short-term CHF accounts in recent weeks. SNB added that downside risks for the Swiss economy are still considerable.
- Additionally, German Chancellor Merkel reiterated Germany's opposition to joint debt issuance, despite EU Van Rompuy's report a week ago hinting that joint debt issuance could be a tangible tool in the medium-term future.
- Talk of stops tripped in Mar Bunds, with 7,000 contracts being triggered to squeeze to a session high at 145.47.
- EUR/CHF moved below the 1.2100 mark to lows of 1.2095 in the wake of the rate decision.
- Furthermore, speculation had been rising that the SNB could move the EUR/CHF floor higher in order to further protect against CHF strength. The SNB reiterated their 1.2000 cap, halting any expectations.
Print 08:48, 13 Dec 2012 - Market Analysis - Source: RANsquawk
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