I’m not a believer in central bank market intervention after seeing it end in tears on too many occasions. The very strong comments from the SNB’s Zurbruegg (copied below from the FXWW chatroom) would normally cause more of a spike than they did which suggests to me that the SNB is in for a long hard battle.
*ZURBRUEGG SAYS SNB CAN BUY FX IN UNLIMITED QUANTITY : *ZURBRUEGG SAYS SNB WILL ENFORCE CAP WITH UTMOST DETERMINATION
*ZURBRUEGG SAYS GOLD INITIATIVE IS HARMFUL TO SNB… all bbg
Yes the SNB can buy FX in unlimited amounts but the distortions that this would create across all markets would make this totally unpalateable for other central banks.