FX Alerts

SNB doggedly defends the CHF ceiling

07/06/12 @ 09:47 GMT by Michael Derks, Chief Strategist


The surge in SNB currency holdings from CHF 237bn at the end of April to CHF 303.8 bn as at May 31st was comfortably above expectations, and reaffirms the determination of the SNB to protect the 1.20 EUR/CHF ceiling. It is also puts into perspective the extent of capital inflow into the Swissie during last month’s market turmoil. Rather than purchasing much in the way of euros, it appears that the SNB has been a keen buyer of both the Japanese yen and the dollar, although these particular figures do not confirm this assertion. The next monetary assessment by the SNB will take place next Thursday.

Tags: CHFeursnb

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro.

Risk Warning: Contracts for Difference (CFDs), which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary.

FxPro UK Ltd is authorised and regulated by the Financial Conduct Authority (previously FSA) (Registration no. 509956). FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07).

live chat