- Analytics
- News and Tools
- Market News
- EUR/CHF: New SNB intervention strategy can easily lead to accelerating franc appreciation – Commerzbank
EUR/CHF: New SNB intervention strategy can easily lead to accelerating franc appreciation – Commerzbank
With its decision on June 16, the Swiss National Bank (SNB) performed a U-turn. Against the euro, the Swiss franc has since gained a good 6%. And that must be exactly the goal if the SNB wants to fight inflation by means of CHF strength, in the view of economists at Commerzbank.
Can "leaning against the wind" be successful?
“The SNB's new intervention policy is currently preventing any significant EUR/CHF recovery phase. Because an exchange rate that cannot rise significantly is likely to fall with increasing speed, increasing Swiss franc appreciation speed is likely.”
“Although the SNB also threatens to intervene in the event of excessive CHF appreciation, these are unlikely to prevent significant CHF appreciation in the medium-term if they are interpreted by the market as ‘leaning against the wind’.”
© 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
