Tuesday , November 5 2024
Home / SNB & CHF / Swiss franc worth more than the euro

Swiss franc worth more than the euro

Summary:
© Cameracraft8 | Dreamstime.com This week, the Swiss franc rose to beyond parity with the euro as traders sought safe haven assets as concerns about risks to global growth grew. The Euro-Swiss Franc pair fell below 1.00 franc per euro during the morning of 29 June 2022 and remained below 1.00 until the morning of ...

Topics:
Investec considers the following as important: , , ,

This could be interesting, too:

Guillermo Alcala writes USD/CHF slides to test 0.8645 support with US inflation data on tap

Swissinfo writes Swiss central bank posts CHF62.5bn profit

Nachrichten Ticker - www.finanzen.ch writes Trump-Faktor und Marktbedingungen könnten für neuen Bitcoin-Rekord sorgen

Charles Hugh Smith writes Is Social Media Actually “Media,” Or Is It Something Else?

Swiss franc worth more than the euro

© Cameracraft8 | Dreamstime.com

This week, the Swiss franc rose to beyond parity with the euro as traders sought safe haven assets as concerns about risks to global growth grew.

The Euro-Swiss Franc pair fell below 1.00 franc per euro during the morning of 29 June 2022 and remained below 1.00 until the morning of 1 July 2022 when the value of a euro exceed that of a franc. The pair has not been this low since 2015.

The rise has been driven by the franc’s haven status and the Swiss National Bank’s (SNB) no nonsense approach to heading off inflation. With Swiss inflation at 2.9% (May 2022) the SNB decided to hike rates by 50 basis points and has signalled that it may go further if necessary.

By comparison, the European Central Bank (ECB) responded to eurozone inflation of 8.1% (May 2022) with no hikes, although it has said it will raise its deposit rate by 25 basis points from its current level of -0.5% at its next meeting in July 2022. On 1 July 2022, the ECB also paused its programme of bond buying, or quantitative easing. However, eurozone inflation continues to rise. In June 2022, it rose to 8.6%, adding further to the challenge.

The SNB rate rise was the first in 15 years, while the planned July ECB hike will be the first in 11 Years.

The Swiss franc also strengthened against the US dollar during June 2022.


Tags: ,
About Investec
Investec
Investec is a distinctive Specialist Bank and Asset Manager. We provide a diverse range of financial products and services to our niche client base.

Leave a Reply

Your email address will not be published. Required fields are marked *