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  • Swiss National Bank Monetary policy assessment

    From snb.ch Story is in PDF Format

    The Swiss National Bank (SNB) is leaving the minimum exchange rate of CHF 1.20 per euro unchanged. The Swiss franc is still high. An appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy. The minimum exchange rate is an important instrument in avoiding an undesirable tightening of monetary conditions. The SNB will therefore enforce this minimum rate with the utmost determination and, if necessary, is prepared to buy foreign currency in unlimited quantities for this purpose. In addition, the SNB is leaving the target range for the three-month Libor ... (full story)

so swiss frank go up?
Quoting sfurqan
so swiss frank go up?
as usually no cut rate she will go up??
keep rate unchanged it mean

XXX/CHF will go up
CHF/XXX will go down
I want to be rich.
"The minimum exchange rate is an important instrument in avoiding an undesirable tightening of monetary conditions."
That's my favorite bit. It's what the BoJ refers to as "exchange rate diplomacy". Central bank manipulates the exchange rate and presents this as monetary policy.
:-)
So, the trend of USD/CHF can continue now?
CHF will go up..
  •  Guest
  • | IP XX.XXX.199.246
yes, trend for usd/chf will continue at the least until .96
look for USD to appreciate against these low yielding currencies/safe haven currencies..ie usd/sgd and usd/chf
In this morning RBNZ released interest rate at the same rate as previous 2.50 Percent and then suddenly NZDUSD fall 100 pip and AUDNZD up 100 pip according to this USDCHF should go up CHFJPY will go down.
I want to be rich.
the 'peg' (loose not exactly copy book peg) will affect the franc's value versus the euro and will continue to make it (IMHO) a trend/swing/position trade to avoid. However, the eur/usd, usd/chf will continue to exhibit it's near perfect negative correlation.

Quoting sfurqan
so swiss frank go up?
  •  Guest
  • | IP XX.XXX.47.162
This news will have little effect on chf as eurchf is still at an acceptable price thus it can go both ways. Appreciation of chf can happen as long as it don't hit eurchf 1.20. While snb feels chf is a bit strong, they have no measures to interfere. Hence, this news has not much impact. Just follow your own indicators.
  •  Guest
  • | IP XX.XXX.199.83
Quoting eurusdthb
keep rate unchanged it mean

XXX/CHF will go up
CHF/XXX will go down
that is wrong, chf must go up no change in policy but the same old repeated words
September 6th 2011 the SNB put in place the EurChf floor value of 1.2000. They have defended that value strongly, I can find only one instance of penetration by approximately 4 pips.

Now that there is a workable gap down to 1.20 traders should concentrate on their charts until such time as the SNB changes its mind. There were comments last year from Jordan et al that even 1.20 was too strong and they would prefer 1.30 or 1.40, but that may have been smoke to stop the hedge funds from applying too much pressure. However.....
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  •  Guest
  • | IP XX.XXX.199.83
usdchf may go up if eurousd go down not because chf weak, it can go down too if chf go up that will be even if eurousd go down too
from a year ago snb gave same policy of cap defend, eurochf fell from 1.2380 to 1.21 and 1.20 after, nothing changed nowadays except waiting for euro zone future
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  • | IP XX.XX.9.172
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