SNB Data Suggest Intervention as Franc Surged to Two-Year Peak


© Reuters. SNB Data Suggest Intervention as Franc Surged to Two-Year Peak

(Bloomberg) — Sight deposits at the Swiss National Bank posted their biggest increase since 2017 last week, suggesting it sold the to contain a rally against the euro.

Economists watch the data carefully for clues on whether the SNB has been active on foreign-exchange markets, and according to Credit Suisse (SIX:) Group’s Maxime Botteron, the jump points to interventions.

The amount of cash commercial banks park with the central bank hit 581.2 billion francs ($581 billion) in the week ending July 26, data published on Monday showed. That’s the biggest absolute increase in just over two years.

For years, the SNB has sought to tame the franc’s strength by buying foreign currency. The prospect of more euro-area monetary stimulus added to appreciation pressure on the franc last week.

A spokesman for the central bank declined to comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

READ  Pound Falls as Investors Brace for Brexit Fight in Parliament





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here