EUR/CHF is trading at 33-month lows near 1.0759. The US added Switzerland to its current manipulators’ list. The SNB removed the cap on the euro on Jan. 15, 2015. Five years after the Swiss National Bank (SNB) shocked the financial markets by abandoning the euro cap, the Swiss Franc is trading at 33-month highs against the single currency. The EUR/CHF pair dropped to 1.0759 on Tuesday, the lowest level since April 2017 and was last seen trading at 1.0766. Tuesday’s slide was likely triggered by the US’ decision to add Switzerland to its watchlist of currency manipulators. The US move will likely discourage the SNB from taking steps to limit the upside CHF. Also, the Franc is trading at 33-month highs even with negative rates. The central bank’s official interest
Topics:
Omkar Godbole considers the following as important: 1) SNB and CHF, 1.) FXStreet on SNB&CHF, EUR/CHF, Featured, newsletter
This could be interesting, too:
Eamonn Sheridan writes CHF traders note – Two Swiss National Bank speakers due Thursday, November 21
Charles Hugh Smith writes How Do We Fix the Collapse of Quality?
Marc Chandler writes Sterling and Gilts Pressed Lower by Firmer CPI
Michael Lebowitz writes Trump Tariffs Are Inflationary Claim The Experts
- EUR/CHF is trading at 33-month lows near 1.0759.
- The US added Switzerland to its current manipulators’ list.
- The SNB removed the cap on the euro on Jan. 15, 2015.
| Five years after the Swiss National Bank (SNB) shocked the financial markets by abandoning the euro cap, the Swiss Franc is trading at 33-month highs against the single currency.
The EUR/CHF pair dropped to 1.0759 on Tuesday, the lowest level since April 2017 and was last seen trading at 1.0766. Tuesday’s slide was likely triggered by the US’ decision to add Switzerland to its watchlist of currency manipulators. The US move will likely discourage the SNB from taking steps to limit the upside CHF. Also, the Franc is trading at 33-month highs even with negative rates. The central bank’s official interest rate currently stands at -0.75%. If the bank attempts to normalize its policy, it risks further CHF appreciation. Essentially, the SNB is stuck between a rock and a hard place. SNB abandoned cap in January 2015 On the 15th of January 2015, the Swiss National Bank suspended the minimum exchange rate of CHF 1.20 per euro and reduced its sight deposit interest rate by 50 basis points at -0.75%. The cap was introduced in September 2011. |
Technical levels Technical levels - Click to enlarge |
Tags: EUR/CHF,Featured,newsletter