Chairman of the Swiss National Bank (SNB) Thomas Jordan did not introduce any changes to the current monetary policy stance, keeping the baseline lending rate as-is and reiterating a commitment to the EURCHF floor at 1.20. The Swiss National Bank believes the Swiss Franc is high and as a result is delaying inflationary rise. The SNB foresees its baseline inflation rate below 1 percent, and well below its 2 percent target rate through the next two years. SNB Thomas Jordan says they are ready to buy ‘unlimited quantities’ of foreign currencies (to defend the Euro floor) and are prepared to take further steps necessary to combat low inflation. DailyFX Strategist John Kicklighter says SNB has real interest to consider European Central Bank moves in their policy meeting.
The Swiss Franc fell against the Euro following the interest rate decision and comments made by the Swiss National Bank. As of yesterday, FXCM Speculative Sentiment Index (SSI) shows that retail crowds are largely positioned on the long side of EURCHF. To learn more about SSI and how it may benefit your trading watch this FXCM Expo Presentation.
EUR/CHF 1 min Chart - March 20, 2014
Chart Creating Using FXCM Marketscope 2.0
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.
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