The SNB is in trouble. If equities rise, EUR/CHF drops. If a fear of an outbreak of a pandemic disease hits markets, EUR/CHF drops. Damned if you do, damned if you don’t. CHF’s old haven status is yet to be jeopardized, the new thing is that CHF performs well even when the reflationary narrative has the upper hand in markets. Could it be that markets have concluded that every time a CHF is bought at current levels, then the SNB prints a new CHF and buys an equity/bond in foreign currency with it? If so then it makes sense to be long CHF and Equities at the same time. Being long CHF is like being long an equity fund.The SNB was very firm in its defence of the 1.0750 level in early 2017. A similar “whatever it takes” intervention is likely needed to keep EUR/CHF from drifting lower given the rising risks in Italian politics and the evolving Corona fears. With the disinflationary or even deflationary forces already at play in Switzerland, it could prove costly for the SNB to give up the fight. The only question is; Do they want to run the biggest equity hedge fund in the world? And if yes, what will Trump’s response be? Switzerland was labelled a currency manipulator just recently.The SNB is in need of signs of a 2017-like #Euroboom, but so far EA PMIs don’t offer a lot of help. Thus far the price action in EUR/CHF is supportive of lower core EUR rates and a decent underpinning of equities, as long as SNB intervenes against CHF strength.