Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?
CHF, EUR/CHF Price Analysis & News
- CHF Soars on SNB Hike
- Door Open to EUR/CHF Parity
CHF Soars on SNB Hike
A surprise hike by the SNB today as the bank responds to rising inflation. This marks the first hike in 15 years from the central bank and not only that, the SNB opted for a 50bps rate hike, with the policy rate rising to -0.25% from -0.75%, going against expectations for the bank to leave monetary policy unchanged. Additionally, the SNB states that further increases in the policy rate cannot be ruled out to stabilise inflation.
In response to the surprise hike, the Swiss Franc is soaring across the board. Meanwhile global bond yields have also edged higher as even the typically dovish central banks switch to an aggressively hawkish stance. That said, with EUR/CHF back below 1.02, this opens the door towards parity.
EUR/CHF Chart: Hourly Chart
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