FX Alerts

SNB doggedly defends the CHF ceiling

07/06/12 @ 09:47 GMT by Michael Derks, Director de Estrategia

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

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