Swiss National Bank to keep 1.20 per € cap
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Swiss National Bank to keep 1.20 per € cap
The Swiss National Bank (Switzerland’s central bank), in its periodical Monetary policy assessment, has announced plans to keep its CHF 1.20 per Euro cap in place, and will not allow the Swiss Franc to strengthen below that level. (A lower CHF-per-Euro rate means a strengthening Franc).
Since the cap was initially put in place in September 2011, after the Franc became a much-sought-after safe haven sending the CHF soaring to near parity with the Euro, the Franc has basically flatlined versus the Euro, eliminating virtually all volatility from Franc trading (see graph below). That has been bad news for Switzerland’s leading retail forex brokers — Swissquote, MIG Bank, and Dukascopy — at least when it comes to domestic trading.
As a consequence, and not surprisingly, these brokers have spent most of their energies the past year expanding abroad. MIG Bank has opened an office in Hong Kong, while Swissquote has expanded to Malta and Dubai.
For the Swiss National Bank press release on the CHF 1.20 per Euro cap click here.
Swiss National Bank to keep 1.20 per € cap Conclusion
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