CHF is still highly valued

SNB Alternate Member Dewet Moser:

  • The Foreign exchange market situation remains fragile and the risk of a renewed large-scale franc appreciation cannot be ruled out
  • The SNB’s expansionary monetary policy stance continues to be appropriate
  • Reiterated SNB’s position that SARON should be adopted as an alternative to Libor which is being wound down
SNB’s Andrea Maechler: Our monetary policy remains expansionary
  •  Continues to be based on negative interest rate and willingness to intervene in the foreign exchange market as necessary.
  • Both helping to ease upward pressure on Swiss franc and preventing undesired tightening of monetary conditions
  • Swiss franc has weakened on a trade-weighted basis but remains highly valued and the situation on the foreign exchange market still fragile
  •  Swiss franc bonds have become less attractive to investors, not least because of the negative interest rate and the SNB’s foreign currency purchases
  • Demand from foreign investors remains strong in some segments of the Swiss franc bond market notably money market debt register claims

CHF little affected, EURCHF a couple pips higher 1.1687

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