MARKET TALK: Blame Thin Markets For EUR/CHF Floor Breach -BNPP

1049 GMT [Dow Jones] Thin markets are to blame for the EUR/CHF move, says BNP Paribas after the cross fell below 1.20. BNP Paribas expects SNB to defend any challenge of its floor and for EUR/CHF to hold above 1.20. "It will be difficult for momentum to build for investors to start positioning against the floor. But any further clearing out of positions could see 1.20 level tested again," says BNP Paribas strategist Michael Sneyd. Any SNB intervention will be done through EUR/CHF, leaving the SNB holding a large amount of euros, notes Sneyd. "EUR/USD could continue to move lower as [the SNB] recycles increased euro holdings into other currencies," he adds. EUR/CHF at 1.2019.