EURCHF is currently trading at 1.2063, its lowest level since December 2012 and as we all know the Swiss Franc is currently pegged to the Euro.
Following legislation by the Swiss National Bank (SNB) in 2011 this particular currency pair has been trading in a fairly tight range, they have expressed their desire not to allow CHF to strengthen too much against its more influential neighbour thus creating a unique situation of, in effect, placing a price floor of 1.20.
In the past 18 months or so, after reaching a peak in May 2013 of 1.2650 we have seen a steady revision towards this base, so it could be seen as a great level to step into the market.
Please follow the link below posted on our site a couple of months ago by Martin Lykke Nielsen of NPInvestor.dk highlighting the merits of trading this particular currency pair.
Will the synthetic floor hold firm or will dynamic market forces take hold and dictate its own course, all will be revealed in the coming weeks.
The dealing desk at Abshire-Smith will certainly be keeping a keen eye on the situation, so be sure to stay tuned for future further analysis.