The EUR/CHF continued to trade with high volatility on Thursday and the franc was on the receiving end as the talk of further intervention from the SNB powered the euro to rise from the record low versus swissy.
The focus remains on the debt-laden euro area and the deepening debt woes, which accordingly is favoring swissy gains on haven demand and keeping the euro fragile. Nevertheless, a week after the SNB intervention and the ECB action to ease the jitters the market is starting to respond, though the volatility remains evident.
On Friday, the market is expected to be affected by intervention expectations again alongside end of the week position squaring. The comments from SNB Vice President in an interview with Tages-Anzeiger newspaper that a temporary peg of the franc might be a coming measure to stem the franc broad rally was the main trigger of renewed intervention jitters.
The comments were confirmed from the SNB spokesman and added downside pressure on the franc with the possible peg as means to ease the pressure on the franc and the economy.
Those comments will keep choppy trading evident for the EUR/CHF. In other news the euro area industrial production for June is due at 09:00 GMT and expected to remain steady on the month with 0.1% gain and to rise 4.5% on the year following 4.0%.