HSBC - "EURCHF has moved off the SNB floor, but further gains will be difficult to sustain. Stabilization in the Eurozone and normalization elsewhere has encouraged CHF sellers back into the market, creating a new environment for EURCHF away from the 1.20 floor. However, it is not clear that this is the start of a sustained rise in the cross. The exchange rate is merely playing catch-up to the earlier reduction in the Eurozone risk premium as reflected in declining periphery spreads. This gap has now closed. In fact, the move away from the 1.20 floor means there is now fresh scope for the CHF to act as a safe haven before the floor kicks in again. This is especially true given the diminished appeal of other safe havens such as the USD and JPY given fiscal tribulations in the US and JPY debasement in Japan. In addition, the risk-reward of being long EURCHF at 1.2500 is quite different from that at 1.2050, a fact that will hinder further gains."