EUR/USD: Continues to Slide – Talk of SNB Diversification

As Tajul points out, there is talk in London that the Swiss National Bank (SNB) may sell Euro today for diversification purposes. As we all know they have accrued Euros by the truckload this month trying to keep the CHF weak. In Asia when this happens (to keep the local currency weak)the central bank ships out the unwanted US Dollars as fast as they buy them. Any move by the SNB to disburse their Euro would result in a massive fall in EUR/USD. As this would send EUR/CHF down as well one susp[ects the SNB is stuck with his Euro holdings – perhaps for some time to come.