The Swiss central bankers once again changed their intervention strategy. In the opinion of economists at Commerzbank, the situation in Switzerland will be of greater significance for the FX market.
The Franc will become a currency that is more complex to value
“Interventions in favour of the Franc would no longer be caused by CHF depreciation. There will only be interventions in favour of the Franc if the SNB considers it necessary from a monetary policy point of view.”
“We now have to figure out whether the SNB’s monetary policy strategy is working out, in particular whether inflation develops as the central bankers had hoped. And if that is not the case, we have to form an opinion as to whether the SNB will prefer to ‘only’ hike interest rates or whether it might prefer to intervene or do both.”