Is the market getting ready to test the SNB ? 1.2100 on watch
I wish it was so! Nothing is better than a free lunch. After more than 1,5 years I could sell short term 1,20 puts again, and take the sweet premium. I don't think SNB would scrap the floor any time soon, not even despite the relatively strong macro numbers that are published from Switzerland. On the strong side of ccy "attack" it is impossible to beat a central bank. They print as much money as the mkt wants. I still remember the most idiot speculation in favour of HUF appreciation in 2003, when idiot guys tried to force the Hungarian Central Bank to abandon its floor. They bleeded out on the trade, while NBH made a huge profit on the intervention.