Created
: 2025.08.27
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
SNB's Martin strikes cautious note on prospect of negative rates -- Reuters
World FX news
Breaking news
SNB's Martin strikes cautious note on prospect of negative rates -- Reuters
2025.08.27 14:27
2025.08.27 14:27
Swiss Central Bank (SNB) Vice Chairman Antoine Martin said on Wednesday that the bar is higher for the central bank to move interest rates into negative territory than it would be to cut rates if they were still above zero, Reuters reported on Wednesday.
Key quotes
Forex market interventions may be necessary to ensure price stability.
Current Swiss franc value is more down to Dollar being weak than stronger Franc.
The bar for taking rates into negative territory is higher than it is for cutting rates when above zero.
Past experience shows negative rates have worked.
However, they create more challenges for banks, investors, households.
We don't see risk of deflationary developments.
Inflation dynamics in Switzerland should not be dramatically disrupted by recent dollar movements.
We currently have no reason to increase or reduce gold holdings.
Bitcoin does not meet our criteria for assets.
Market reaction
At the time of press, the USD/CHF pair was up 0.22% on the day at 0.8050.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland's official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country's economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc's value, causing a turmoil in markets. Even though the peg isn't in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country's currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year - once every quarter, less than other major central banks - to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc's (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank's currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland's main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
Last updated
: 2025.08.27
Related articles
EUR/USD holds firm above 1.1800 as strong US Retail Sales limits Dollar downside
2025.09.16 22:10Canada CPI unlikely to alter BOC easing path - BBH
2025.09.16 19:49When is the US Retail Sales data and how it could affect EUR/USD?
2025.09.16 19:38EUR/USD targets July high at 1.1829 - BBH
2025.09.16 19:34USD/CAD languishes below 1.3780 ahead of Canadian and US data releases
2025.09.16 19:17USD/JPY: Likely to trade in a range between 147.00 and 147.60 - UOB Group
2025.09.16 19:12
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/USD holds firm above 1.1800 as strong US Retail Sales limits Dollar downside
The Euro (EUR) came under mild pressure against the US Dollar (USD) during the American session on Tuesday, as upbeat US economic data tempers risk appetite and lifts the Greenback modestly off recent lows.
New
2025.09.16 22:10Gold Price Forecast: XAU/USD approaches $3,700 on Dollar's weakness
Gold appreciated for the third consecutive day on Tuesday as the US dollar tanked amid hopes of a dovish turn by the Fed on Wednesday. The US Dollar Index has dropped to fresh two-month lows, which buoys the precious metal to fresh record highs right below $3,700.
New
2025.09.16 19:57Canada CPI unlikely to alter BOC easing path - BBH
Canada's August CPI is expected to confirm that underlying inflation pressures are stable but fading, leaving the Bank of Canada free to resume easing as labor market weakness deepens and policy divergence weighs on CAD, particularly against AUD and NOK, BBH FX analysts report.
New
2025.09.16 19:49Chinese refineries processed more crude oil in August - Commerzbank
Chinese refineries processed 63.46 million tons of crude oil in August, according to data from the National Bureau of Statistics (NBS). This was 7.4% more than in the same month last year, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.09.16 19:39When is the US Retail Sales data and how it could affect EUR/USD?
The United States (US) Retail Sales for August is due for release today at 12:30 GMT. The Retail Sales data, a key measure of consumer spending, is expected to have grown at a moderate pace of 0.2%, against a 0.5% increase seen in July.
New
2025.09.16 19:38EUR/USD targets July high at 1.1829 - BBH
EUR/USD is firming toward its July high as resilient Eurozone data and a steady ECB policy stance underpin the uptrend, while relative Fed dovishness continues to favor the euro, BBH FX analysts report, BBH FX analysts report.
New
2025.09.16 19:34Ukrainian drone attack on Russian export terminal causes Oil prices to rise - Commerzbank
Oil prices rose significantly on Friday, recovering from the losses suffered the previous day. The price of Brent crude jumped from its previous low of around $2 to $68 per barre, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.09.16 19:21USD/CAD languishes below 1.3780 ahead of Canadian and US data releases
The US Dollar extends losses on Tuesday after a nearly 0.5% decline on Monday. Bears are focusing on 10-day lows, at 1.3760, with upside attempts capped below 1.3780 as the market awaits Canadian CPI and US Retail sales to frame interest rate decisions later this week.
New
2025.09.16 19:17USD/JPY: Likely to trade in a range between 147.00 and 147.60 - UOB Group
US Dollar (USD) is likely to trade in a range between 147.00 and 147.60. In the longer run, a narrower range of 146.20/148.50 is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.09.16 19:12USD: Benign global conditions keep the dollar soft - ING
The dollar has started the week on the softish side. This may partly involve some pre-positioning ahead of tomorrow night's Fed rate cut. But it will also be a function of the benign external environment, ING's FX analyst Chris Turner notes.
New
2025.09.16 18:57Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
