Switzerland and Ireland have been added to the US Treasury Department’s monitoring list when it comes to FX practices, Chris Turner, FX analyst in J.
A large fracture requires more than 0.94 to reduce a large SNB rate
“This is an unworn up to the Swiss National Bank, which faces inflation near zero, which is a very strong Swiss franc and uses FX to enter as part of its monetary policy.”
“While SNB will publicly say that this new American cabinet set does not change anything when it comes to FX intervention, it will make life more difficult. With FX intervention it is likely to be restricted, on the margin, it may reduce the 50bp rate of SNB on June 19. For reference, the prices of OIS market currently.
“EUR/CHF has a little support from the end of the session’s end speech at the European Central Bank yesterday. But a large break is likely to require more than 0.94 reduce a large SNB rate later this month.”
