Author Topic: Despite Dollar Strength Swiss Franc is Overvalued says SNB Maechler  (Read 1420 times)

TradersCom

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The USD dollar is near 14 yer highs on the dollar index, however that does not move the Swiss National Bank and its view on the Swiss Franc. Andréa M. Maechler, Member of the Governing Board in Zurich reminded us today;
Highlights
- Strong Swiss Franc a challenge for Swiss economy
- Can't exclude more rate cuts if necessary
- But negative rate can't be lowered indefinitely
- SNB stands ready to act if needed on Italy vote
- Closely watching how banks deal with negative rates
 

- Doesn't see recent cash hoarding in Switzerland
- CPI data suggests current policy should be continued

EuroSwiss Daily Chart EURCHF via @hiedstertrades



Dollar Swiss Daily Chart USDCHF via @hiedstertrades



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ThePitBoss

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Followed up by Swiss National Bank governor Thomas Jordan in Swiss newspaper Tages-Anzeiger

Says SNB is ready to intervene in currency market if necessary
From a Swiss perspective we have an interest in a normalization of global monetary policy
Says negative interest rates remain a central element in SNB's monetary policy
Our expansionary monetary policy is appropriate in the current environment
Declines to comment on market operations, when asked if SNB was active in FX market after US election
Sees broad support in Switzerland for SNB's monetary policy and its independence
Says Swiss banking system is solid
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ThePitBoss

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More from the SNB - Zurbruegg on the wires

Negative rates playing 'decisive role' in curbing Swiss Franc
Exceptionally low rates fraught with challenges
Risks of negative rate side effects currently manageable
Negative rates 'indispensable'
Essential that banks apply conservative principles to lending
Monitoring real estate market constantly
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