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Will the Swiss Central Bank’s Intervention hold?!?
By Sean Hyman | June 23, 2009
Lately, the Swiss National Bank (their central bank) has been intervening in their currency in particular vs. the euro. When the EUR/CHF exchange rate pushed below 1.45, their exporters were screaming from pain. This was crushing their exporters and thus far has reduced exports by a full 17%. The SNB had enough of it and started selling francs and buying euros. They pumped a large number of francs out into the market to hopefully “water down” the Swiss franc (CHF) especially in relation to the euro since that’s where a ton of their exports go. Watch the 1.50 “line in the sand” to see if it can hold and reverse the longer term downtrend. Click the chart to enlarge it. 
Tags: bank, blog, central bank, CHF, currency, downtrend, EUR, Euro, forex, forextrading, franc, Hyman, intervention, market, rate, Sean, Sean Hyman, Swiss
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