Intra-Day Market Moving News and Views
27 Jan 2015 6:15GMT
USD/CHF -...... Both dlr/chf & eur/chf rallied sharply in Monday session, traders cited part of the reason was on a large increase in the SNB's sight deposits.
Bloomberg reported sight deposits at the SNB increased nearly 8% last week, suggesting the central bank continued to buy foreign currency after it abandoned its cap on the franc.
Sight deposits of domestic banks increased to 365.5 bln francs in the week ending January 23 from 339.6 bln francs a week earlier, data published on the SNB's website Monday showed.
Today SNB's Vice Chairman Jean-Pierre Danthine, (he said 2 week ago on Monday the central bank would maintain the peg but 3 days later, SNB unpegged the franc cap) he said in an interview on Tuesday the SNB is ready to intervene in the foreign currency market to ease monetary policy after ditching its cap on the Swiss franc earlier this month.
Dantine told Swiss national daily TagesAnzeiger "Giving up the cap means a tightening of monetary policy. We accept this, but only up to a point. We are fundamentally prepared to intervene in the FX market."
He then said it would take some time for the FX markets to balance out, but declined to give exact levels, saying the central bank was not only looking at the exchange rate with the euro but also with the dollar.
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