EUR/CHF is targeting its lowest levels since July 2017.
As the world worsens, the strengthening of the franc is inevitable, and the best thing SNB could do is slow down this appreciation through intervention.
For some time now we have also been talking about a possible intervention by the bank, given that EUR/CHF is approaching 1.1000. At this stage, SNB does not appear to give any clear indication that they will intervene or defend this level.
The next meeting of the Central Bank of Switzerland is September 19, but given the deteriorating global environment, Jordan and his colleagues are unlikely to be so patient.
Intervention is definitely the way they would intervene, as they did in the past. However, after the January 2015 crash, intervention may remain in the background.
Further reduction of interest rates is also possible, and they will not have to wait until September 19 to take this step. Be alert.
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