Swiss Franc at 1.48 Per Euro Would See SNB Act, Commerzbank Says

By Justin Carrigan

Jan. 6 (Bloomberg) -- The franc’s advance to less than 1.50 per euro shows the Swiss National Bank’s resistance to the currency’s gains has shifted rather than disappeared, according to Commerzbank AG.

The franc appreciated to 1.4809 per euro on Jan. 4, its strongest level in nine months. It was at 1.4846 as of 8:09 a.m. in London today.

“The only thing that has changed is that the SNB’s pain threshold has been moved downwards with the lower level now located in the area around 1.45-1.46,” a Comerzbank team including Lutz Karpowitz in Frankfurt wrote in a report today.

“Moreover the speed of a possible appreciation of the franc now plays a more important role,” the analysts wrote. “Should the franc appreciate rapidly, with euro-franc quickly falling below the 1.48 mark, the SNB is likely to take action again.”

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net