The Swiss newspaper Tagesanzeiger reports that the SNB has set an unofficial corridor of 1.05-1.10 for EUR/CHF- This would explain the price action last week
- It is likely the market will react to this news with further CHF selling, but many got burned by the SNB dropping the 1.20 floor and will be hesitant to bet again on SNB policy
- Further, liquidity in CHF pairs has yet to normalize and sharp 200-300 pips moves in either direction could stay the norm for some time ahead
You can read the full article here (in German): http://www.tagesanzeiger.ch/wirtschaft/konjunktur/SNB-legt-angeblich-FrankenKorridor-fest/story/16798849
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