They're obviously putting pressure on it. Think they're gonna budge on this or not? Could be another Sterling type move if they give way. How much did Lamont lose defending it? 4 billion?
This is probably different as all you need to do to fight against capital inflow is simply debasing your currency, i.e. pressing control+p repeatedly. So they can hold the price floor as long as they have the will power to do so, but I imagine they are facing huge political and public pressure.
The boys will go after the peg, it's too juicy not to. Both sides know their strengths and weaknesses. The boys have more money if they master their troops and plan correctly and that will probably be the deciding factor. What will be interesting is how many times the level is tested before giving way like a weak dam...
sterling was different, it was to sustain the overvaluation by selling foreign currencies, now it is to fight the overvaluation by buying foreign currencies. the creditability of the SNB is on the hook, it gotta fight. i am long eurchf at least until it is severly attacked
for all intents and purposes yes they should. there are so many other pairs and crosses out there that don't have a central bank just itching for a fight w/ traders. now the snb is talking about possibly restricting capital movement?! i would not want to be long the swissie and log into bloomberg and see a story saying "SNB announces investors may only withdrawal money when we decide to let them".