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Increase in sight deposits points toward SNB intervention

Latest data released earlier suggests the SNB have been in to weaken the swiss franc

Domestic sight deposits rose to CHF 406.14bln in w-e 18 Dec vs CHF 401.4bln prev, indicating that banks are preferring to find a safe haven for their funds

A rise in sight deposits can point the finger also at SNB intervention, (although year-end cash flows may be playing it part) and this morning's price action of EURCHF heading higher despite euro weakness elsewhere puts the central bank in the frame as I highlighted in my order board post earlier

Last week EURCHF fell to 1.0756, its lowest level since 6 Nov, but has been well supported since and again from 1.0780 this morning

USDCHF has also seen a solid rally so far as part of the "smoothing"

SNB recently left interest rates on hold but threatened more intervention

Currently 0.9955 and 1.0809 both near session highs

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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