It’s a tough one, not least when the euro is also under heavy pressure amid surging gas prices. That as the energy disruption continues to permeate, with Iran striking key energy facilities across Gulf nations still. The latest being Bahrain as seen here earlier.

The SNB seemed like they were comfortable enough to want to draw a line near 0.90 for EUR/CHF last week. That comes amid their verbal intervention here, followed by a bid up in the pair to just above 0.91 shortly after at the time.

However, all of that is now looking to be thrown out the window as EUR/CHF breaches below the 0.90 mark. On some accounts, that is the lowest in the pair since the rug pull in 2015. Otherwise, it’s a fresh record low for the pair as the Swiss franc continues to run higher amid geopolitical tensions.

With there being no precedent for judging moves on the way down, the best we can do is to look into key round figures as potential psychological support levels for the pair. In that sense, it is all about identifying where might the SNB look to redraw the line in the sand.

That is now the main thing to keep an eye out for in the currency pair, that is if this break of 0.90 holds through the day.

In having to deal with deflationary pressures again recently, a stronger currency will not do the SNB any good in trying to dig themselves out of the rabbit hole once again. It’s a familiar road and one that they have been accustomed to for the longest of time.

The Covid pandemic gave them an out but now, we’re starting to move back towards a call for unconventional monetary policy once more. And that is something the central bank will want to put off for as long as they can. From before: US-Iran tensions most untimely for the SNB