Euro Advances Against All Counterparts Except the Swiss Franc Despite SNB Warning

According to the official statistics, the Euro Zone surplus grew to 12.6 billion euros for the month – the largest positive balance since July 2002 and very nearly the highest on records going back to the 1980’s. However, there was one pair that prominently stood out for its sharp reversal against the euro: EURCHF. The Swiss National Bank met expectations at its quarterly policy meeting by holding the target lending rate at an average of 0.25 percent; but it is still unusual to hear their official stance of fighting the franc’s appreciation through intervention. In a time when authorities the world over are warning against protectionism, this stance may rise the ire of some foreign politicians. Initially, this announcement sent the franc tumbling; but previous swings in the exchange rate were on actual periods of central bank trading.