No interventions from Swiss National Bank last week

Safe-haven demand for the yen and Swiss franc is noticeable as a result of growing uncertainty around the forthcoming EU referendum. Brexit fears-led risk-of moods will continue to fuel demand for the traditional safe-haven CHF and the Swiss National Bank have good reason to be concerned. Of course for the SNB FX market interventions have long since been an issue.

The Swiss National Bank has long since been concerned about the Swiss franc being in demand in connection with the Brexit referendum. However, the sight deposits published on Monday do not suggest that the SNB intervened against CHF strength last week.

A notable downtrend in EUR-CHF was seen. The pair lost more than 2 percent last week and has reached the lowest levels since early April.

"Whether intended or not, the SNB is sending out a clear message to the market: it does not want to assume the full risk and will not tolerate (at least partially) downtrends in EUR-CHF," notes Commerzbank in a report.