EUR/CHF in the spotlight
The general thinking on EUR/CHF is that it's turning into a proxy for the French election. But that might not be the entire story.
The pair is flat today after a few days of more-volatility trading. However two-month implied volatility is up today by the most since the Brexit vote.
Why right now? The French election has been a factor for more than a month but it's just in the past week or so that this pair has bounced around and options activity has picked up. Add in the unusual bids in the euro like the one today and you can make the case something is going on at the SNB.
Our old friend Sean Lee made a good point yesterday and we're keeping a close eye on the Swiss franc in the days ahead.
The SNB meeting is March 16, about 14 hours after the FOMC decision.