The Swiss franc has once again gained against the euro in the last couple of months – believe it or not.  With the Greek debt talks in on and off mode, and European Union leaders remaining indecisive of how to quell the current crisis, investors have once again returned to the safety of Swiss franc based assets.  However, this has caused the euro/Swiss franc exchange rate to once again test the Swiss National Bank’s currency exchange limit.  The limit, imposed last September, was enacted in order to weed out speculators – and hopefully help Switzerland’s companies in maintaining some sense of global competitiveness.

However, the measure seems to have failed – with the rate still rising in favor of the Swiss franc.  The currency has now gained by almost 2%, trading just above the 1.2000 limit at 1.2045.  The fact that the rate is now this close to the limit sparks speculation that the Swiss National Bank could be entering the market very soon.

And there is a high probability of this happening as interim SNB Chairman Thomas Jordan seeks confirmation of his candidacy for the top spot in the Swiss National Bank.  Elected to an interim status in early January, Jordan is likely to opt for intervention early, stomping out investors and delivering a message to the market – just in time for his speculated confirmation this month.  According to reports by Der Sonntag, Jordan is expected to be confirmed by the Board’s committee in the coming weeks.  He is also anticipated to carry on policies backed by ex-Chairman Hildebrand – following his impromptu departure following a personal scandal – such as a weaker franc.