The Swiss National Bank is meeting today for their interest rate meeting. Consensus is that they will leave rates unchanged at 0.25%. What Forex traders will be watching is any word about possible future intervention, as the Swiss Franc continues to strengthen against the Euro.
Word out from dealers is that the SNB is protecting the 1.4600 figure and yesterday the EURCHF spiked up to1.4635 after it hit 1.4605. The SNB denied involvement in the move, but Forex dealers have reported that the SNB is in the market putting in bids.
The SNB is in a quandary as it would like the EURCHF to be trading above 1.5000, as weakness in the Euro could cause export declines to its key European trading partners. However, the SNB doesn't want to fight a losing battle of propping up the EURCHF as a cloudy Euro zone outlook has weakened the Euro. Therefore, the SNB may try to use conservative language regarding their economy to temper market expectations for Switzerland and the CHF. It may also use the fact that the UK, US, and ECB have yet to raise rates, along with the RBNZ leaving rates steady last night as proof that they don't need to get aggressive about tightening.
For whatever it is worth, in an interview last week, Warren Buffet mentioned the CHF as his favorite alterative to the dollar right now. This was probably based on the expectation that the SNB will be raising rates before the US and that the CHF could be considered a secondary Safe Haven in case of a return to global economic weakness.