Change in SNB Tactic?

Yesterday we cautioned that the SNB's tactics appeared to have reached a point of diminishing returns. We thought the SNB would have to change their tactics. We suggested that they might let the euro go below CHF1.50 to spring a bear trap. Wrong. Instead it appears they have stepped up the aggressiveness of their intervention. Although actual confirmation remains elusive, it appears that the SNB or through a multilateral institution, are on the bid rather than just accepting offers. They also appear to have chased the market higher. The euro has now been propelled through the 200 day moving average near CHF1.5140 and gone through CHF1.5250, triggering a double-no-touch option that was rumored to have been expiring today or tomorrow. The next target would be CHF1.5300, the high from early April. The high set since the SNB's quantitative easing announcement in March was CHF1.5447.