Jump to content

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?


Recommended Posts

CHF, EUR/CHF Price Analysis & News

  • CHF Soars on SNB Hike
  • Door Open to EUR/CHF Parity

Swiss Franc Price Forecast: Parity on the Cards for USD/CHF Ahead of SNB  Rates Decision

CHF Soars on SNB Hike

A surprise hike by the SNB today as the bank responds to rising inflation. This marks the first hike in 15 years from the central bank and not only that, the SNB opted for a 50bps rate hike, with the policy rate rising to -0.25% from -0.75%, going against expectations for the bank to leave monetary policy unchanged. Additionally, the SNB states that further increases in the policy rate cannot be ruled out to stabilise inflation.

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?

In response to the surprise hike, the Swiss Franc is soaring across the board. Meanwhile global bond yields have also edged higher as even the typically dovish central banks switch to an aggressively hawkish stance. That said, with EUR/CHF back below 1.02, this opens the door towards parity.

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?

EUR/CHF Chart: Hourly Chart

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?

Source: Refinitiv

 

Jun 16, 2022 | DailyFX
Justin McQueen, Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,280
    • Total Posts
      90,909
    • Total Members
      41,396
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Mapiknot
    Joined 06/02/23 21:35
  • Posts

    • Look Ahead to 07/02/23: RBA; GB Retail Sales; BP, BNPP earnings Australia’s central bank is likely to deliver a fourth consecutive quarter-point interest rate hike, after further tightening by the Fed, the ECB and the BoE. Brace for UK retail, earnings from BP (BP) and BNP Paribas (BNPP). Also, look out for US trade balance figures and Halifax house price data ahead of key UK growth data out later in the week.    Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Monday 06 February 2023        
    • Hi, I am practicing certain strategies in demo account. I have created few screeners but when i tried to buy or short sell different stocks shortlisted based on screener conditions, i am getting different kinds of errors. Some stocks you can buy but can't short-sell and so on. I searched in the forums and i understand different restrictions such as market cap should be so and so. Are these rules defined somewhere?  for e.g. one forum reply says market cap should be above 10 billion otherwise you will get second message in below list. However even i try to short sell a stock that has £30 billion market cap, i get the same error.  1. IG is not accepting opening trades on this market, you may only place an order to close. 2. Market you have requested is not longer available online Any suggestions on the above will be greatly appreciated. Thank you.
    • Charting the Markets - February 6, 2023 FTSE 100, DAX and S&P 500 tiptoe lower following strong US jobs report. EUR/USD and GBP/USD are topping out while EUR/GBP rallies. And gold, Brent crude, and natural gas head lower, as payrolls strengthen the dollar.                         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...