- Analytics
- News and Tools
- Market News
- Will Swiss National Bank continue to intervene in the currency market? - Commerzbank
Will Swiss National Bank continue to intervene in the currency market? - Commerzbank
According to strategists at Commerzbank AG, even the disapproval of the U.S. government may not be enough to prevent the Swiss National Bank from intervening in the currency market.
The Swiss franc reached its highest level since April 2017 against the euro after Washington added Switzerland back to its currency watch list and urged the country to adjust its macroeconomic policies.
Yet strategists say Switzerland's growth and inflation data could make the case for the SNB to continue buying foreign currency in an effort to curtail the franc's appreciation.
"We know from the SNB's intervention activity that the franc is already at critical levels, i.e. at levels at which it has intervened before last year. There is a high likelihood that it will step into the market, or is already active." said Thu Lan Nguyen, a strategist at Commerzbank
SNB data in August suggested the bank had pumped billions of francs into markets, buying foreign currency in an effort to curb the franc's strength. The SNB said Tuesday that its interventions were designed only to offset the ill effects of too strong a currency. The interventions, which aren't aimed at giving the nation a competitive advantage, are disclosed in an annual report, the SNB said in a statement.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
