Never miss a story from George Meng

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to George Meng

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • Swiss National Bank introduces negative interest rates
  • SNB reiterates it will continue to defend 1.20 EUR/CHF floor
  • EUR/CHF jumps by 80 pips from 1.2010 to 1.2092

The Swiss National Bank (SNB) has surprised markets by introducing negative interest rates, and has reiterated that it will continue to defend the 1.20 EUR/CHF floor with the “utmost determination”. This follows a long period of time where the exchange rate has threatened to dip below the floor multiple times.

The new LIBOR target range by the central bank will be -0.75% to 0.25%, with interest rate for sight deposits at -0.25%. This means commercial banks will be charged 0.25% interest to deposit funds at the central bank, and the negative rate will act as a disincentive for safe-haven buying of the Swiss Franc. The SNB also announced it is “prepared to buy unlimited foreign currency to shield [the] cap”, displaying strong conviction on maintaining the floor.

Following the announcement, EUR/CHF rose from 1.2010 to 1.2092 within the space of 15 minutes. Meanwhile USD/CHF rallied by close to 100 pips. Currency Strategist Ilya Spivak sees the next potential resistance for the pair at 0.9835, while support rest at 0.9660.

EUR/CHF (5 Min Chart) - Created usingMarketscope 2.0

Swiss Franc Plummets After SNB Introduces Negative Interest Rates

Get Real-Time Feedback on Your Trades with DailyFX on Demand!

Written by George Meng, any comments, suggestions, or feedback please email