Select Language

CHF: Intervention, pharma and the franc - ING

Breaking news

CHF: Intervention, pharma and the franc - ING

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.01 18:17
CHF: Intervention, pharma and the franc - ING

update 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.

EUR/CHF to continue to trade near 0.92/93 into year-end

"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."


Date

Created

 : 2025.10.01

Update

Last updated

 : 2025.10.01

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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

USD/CHF bounces up and reaches 0.7960 as the US Dollar pares losses 

The US Dollar is trimming some losses during Wednesday's European trading session as the impact of the US government shutdown wears off.
New
update2025.10.01 18:51

Silver price today: Silver rises, according to FXStreet data

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data.
New
update2025.10.01 18:31

WTI Price Forecast: Languishes near $61.50 support zone; seems vulnerable

West Texas Intermediate (WTI) US Crude Oil prices extend last week's retracement slide from the $66.20 region, or the highest level since August 4, and drift lower for the fourth successive day on Wednesday.
New
update2025.10.01 18:28

USD/CAD stays above 1.3900 due to lower Oil prices

USD/CAD moves sideways after registering gains in the previous session, hovering around 1.3920 at the time of writing during the European hours on Wednesday. The USD/CAD pair may appreciate as the commodity-linked Canadian Dollar (CAD) could face challenges amid declining Crude Oil prices.
New
update2025.10.01 18:26

CHF: Intervention, pharma and the franc - ING

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.
New
update2025.10.01 18:16

GBP/USD: Likely to trade in a range of 1.3415/1.3470 - UOB Group

Pound Sterling (GBP) is likely to trade in a range of 1.3415/1.3470. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.10.01 18:09

DXY: ADP, ISM Mfg today - OCBC

US Dollar (USD) traded a touch softer overnight in amid concerns of US government shutdown. DXY last seen at 97.62 levels.
New
update2025.10.01 17:54

EUR/GBP eyes range breakout as momentum builds - Société Générale

EUR/GBP is testing the top of its multi-month range, with momentum still tilted higher. Holding above the 50-DMA at 0.8670 would keep the uptrend intact, targeting 0.8765 and potentially 0.8810/0.8825, Société Générale's FX analysts note.
New
update2025.10.01 17:48

EUR/USD: Consolidation on the daily chart - OCBC

Euro (EUR) continued to trade modestly firmer. Pair was last at 1.1760 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
update2025.10.01 17:47

Oil: OPEC+ noise continues to grow - ING

Oil prices extended losses yesterday after reports that OPEC+ may be bringing supply back onto the market at a quicker-than-expected pace, ING's commodity experts Ewa Manthey and Warren Patterson note.
New
update2025.10.01 17:44

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel