According to Kit Juckes, Head of Foreign Exchange at Societe Generale, "the market is busy gapping aggressively higher and taking out layer after layer of strikes. It is happening very quickly and market makers are panicking leading EUR/CHF vols to move explosively higher in the front end. The next layer of strikes is reportedly between 1.24 and 1.25, though looking at price action it seems that we hit a layer of strikes every 20 pips or so."
Kit adds: "The shift by asset allocators is yet to happen and the reduction of safe haven bids in CHF are yet to play out. The faster CHF weakens, the faster safe haven bids will drop and asset allocators will have their emergency investment committee meetings."