Created
: 2025.10.01
2025.10.01 18:17
It's been quite a busy week for Swiss news. On Monday, the Swiss National Bank effectively increased the amount of CHF banking deposits exposed to a 0.25bp charge. The press release pitched that as a technical clean-up to last year's adjustment in minimum reserves. It doesn't look like a 'stealth' easing of monetary policy, but it's interesting to see what happens to Swiss money market rates when the measure goes into effect on 1 November. It is a downside risk to the franc, however, ING's FX analyst Chris Turner notes.
"Late Monday also brought a very rare joint statement from Swiss and US authorities on the use of FX intervention. The SNB statement marketed this as a kind of blessing to use FX intervention as part of its regular monetary policy activities. Whereas the US version of the statement merely focused on the use of intervention to address disorderly or volatile markets. That may be the reason why EUR/CHF has not traded much higher on the news. And these releases preceded data which showed SNB FX buying intervention had picked up a little to CHF5bn in the second quarter."
"We speculate whether the FX intervention statement has something to do with the pharma deals President Trump is announcing this week. Presumably, Washington wants to get the Swiss drugmakers onside as he launches his new 'TrumpRx' website to deliver drugs at discounted rates to US consumers. Pfizer was the first of the big companies to sign up to this yesterday. If this read is right, then, yes, maybe Switzerland does have Washington's blessing for continued FX intervention and can avoid being labelled a currency manipulator."
"SNB FX intervention will be passive, however, and we forecast EUR/CHF to continue to trade near 0.92/93 into year-end."
Created
: 2025.10.01
Last updated
: 2025.10.01
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.
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].
Disclaimer:
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