Video: What Switzerland's Gold Vote Means for the SNB's 1.2000 EURCHF Floor
• Switzerland will vote on a referendum for SNB to hold 20% of its reserves in gold on November 30
• Its passage could complicate the central bank's efforts to keep a 1.2000-floor under EURCHF
• A 'Yes' vote doesn't necessarily mean a floor collapse, a 'No' doesn't ensure a rally
See the DailyFX Analysts' forecasts for the Dollar, Euro, Pound and Gold through the 4Q on our DailyFX Trading Guides page.
Will the Swiss National Bank (SNB) be able to hold up its vow to keep EURCHF above 1.2000 with a referendum that could force it to buy significantly more gold due for vote in two weeks? On November 30, Switzerland will vote on a program that is being called the 'Save Our Swiss Gold' initiative. The proposal looks to require the central bank to hold 20 percent of its reserves in gold rather than the 8 percent currently stipulated. While the move could make the authority's effort to intervene in the market and keep the tide back, it doesn't necessarily mean the initiative would fail. Alternatively, should the country vote against the bill, the EURCHF is facing additional fundamental headwinds that could prevent major relief rallies. We discuss what this vote can mean for the EURCHF and traders in today's Strategy Video.
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