Swiss Franc Strength Could Force SNB to Slash Interest Rates to -1.0%
Written by Gary Howes
The Swiss Franc continues to march higher and the Swiss National Bank might find it will have to cut interest rates in response, according to Andrew Kenningham, Chief Europe Economist at Capital Economics.
The Swiss Franc Frustrates Bets on Pound after U.S. Treasury Feels SNB's Collar
Written by James Skinner
The Franc has frustrated intitutional buyers of Pound Sterling this week after the U.S. Treasury indicated it will be watching Switzerland's central bank closely for signs of currency manipulation in the months ahead, prompting a surge higher by the safe-haven unit.
The Pound starts the new year with a sharp dip against the Swiss Franc, and further losses could occur over the course of January as the GBP/CHF exchange rate threatens to enter into a fresh technical downtrend.
The Pound has been rising against the Franc since August, in sympathy with the broader rally in Sterling. We would however suggest only a decisive win for the Conservatives at the General Election would provide the impetus required to break GBP/CHF out of this range.