News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Swiss Franc Slips, Swiss National Bank Believes CHF is 'Still High'

Swiss Franc Slips, Swiss National Bank Believes CHF is 'Still High'

David Maycotte,

Talking Points:

  • Swiss National Bank Keeps Lending Rate Unchanged at 0.00%
  • Swiss Franc Sank Against the Euro Following the Rate Decision
  • SNB Sees Slow Inflation Rise Through 2015

Chairman of the Swiss National Bank (SNB) Thomas Jordan did not introduce any changes to the current monetary policy stance, keeping the baseline lending rate as-is and reiterating a commitment to the EURCHF floor at 1.20. The Swiss National Bank believes the Swiss Franc is high and as a result is delaying inflationary rise. The SNB foresees its baseline inflation rate below 1 percent, and well below its 2 percent target rate through the next two years. SNB Thomas Jordan says they are ready to buy ‘unlimited quantities’ of foreign currencies (to defend the Euro floor) and are prepared to take further steps necessary to combat low inflation. DailyFX Strategist John Kicklighter says SNB has real interest to consider European Central Bank moves in their policy meeting.

The Swiss Franc fell against the Euro following the interest rate decision and comments made by the Swiss National Bank. As of yesterday, FXCM Speculative Sentiment Index (SSI) shows that retail crowds are largely positioned on the long side of EURCHF. To learn more about SSI and how it may benefit your trading watch this FXCM Expo Presentation.

EUR/CHF 1 min Chart - March 20, 2014

Swiss-Franc-Slips-Swiss-National-Bank-Believes-CHF-is-Still-High_body_Picture_1.png, Swiss Franc Slips, Swiss National Bank Believes CHF is 'Still High'

Chart Creating Using FXCM Marketscope 2.0

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to instructor@dailyfx.com.

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES