Daily Forex News

Currency trading with the Swiss franc

The Swiss National Bank appears to be intervening — albeit it on a very small level — in forex trading again. The SNB has been intervening on occasion since last year, when it announced a policy meant to keep the franc lower against the euro in forex trading.

MarketWatch reports on the possibility that the SNB is intervening again:

Another round of rumored currency intervention by the Swiss National Bank Wednesday appeared to be a warning shot designed to chill traders looking to sell the euro versus the Swiss franc as monetary policymakers prepare to meet, analysts said. …

"If it was an SNB intervention, it was probably one of the smallest ones we’ve seen … it’s really just sort of backing traders off (of buying the Swiss franc) ahead of tomorrow’s meeting," said Peter Rosenstreich, chief market strategist at ACM in Geneva.

At any rate, the Swiss want their currency weak in relation to the euro in forex trading, since during times of recession and economic uncertainty it can be beneficial to have a weak currency.

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