EUR/CHF Jumps After SNG Suggests Negative Rates
Last Wednesday saw a massive jump in the EUR/CHF exchange from 1.2073 up to 1.2112 in a matter of a few hours. Since then it has fallen slightly but remains around the 1.2100 level. The increase came after the pair had fallen steadily since it reached a high of 1.2232 towards the end of May.
The rise came after the Swiss National Bank alternate member Thomas Moser suggested that the Bank may take rates below 0% in order to dissuade CHF buying. If there are more comments in this vein or the Bank takes action then further upwards movement can be expected.
The Swiss National Bank is due to meet on September 18th to decide on any future action. However, there is no guarantee that the meeting will be followed by an announcement, so the pair could remain fairly stable.