|

SNB's Jordan: Easing of monetary policy possible because fight against inflation has been effective

Following the decision to lower the policy rate to 1.50%, Swiss National Bank (SNB) Chairman Thomas Jordan said that the “easing of monetary policy was possible because fight against inflation has been effective.”

Key quotes

Inflation is likely to remain in target range over the next few years.

See lower second round effects from inflation.

Uncertainty still elevated, will adjust policy again if necessary.

Price momentum has slowed more quickly than expected in December.

Swiss growth likely to remain modest in coming quarters.

Weak foreign demand and Franc appreciation has had dampening effect.

Remain willing to be active in forex market as necessary.

Interest rate cuts is 100% compatible with our framework.

We have much lower inflationary pressure than 3 months ago.

We give no forward guidance on future interest rates, will see where we are in 3 months time.

Rate cut is not a leaving gift, we always make the right decisions.

We always make our monetary decisions independently of what other central banks do.

We have no goal for the size of our balance sheet, we have no need to reduce it.

Market reaction to SBN Jordan's comments

USD/CHF is off the multi-month highs but holding 1% higher on the day at around 0.8960.

Swiss Franc price today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the weakest against the Australian Dollar.

 USDEURGBPCADAUDJPYNZDCHF
USD 0.42%0.27%0.22%-0.08%0.26%0.13%1.17%
EUR-0.43% -0.16%-0.21%-0.51%-0.20%-0.28%0.74%
GBP-0.27%0.15% -0.05%-0.34%-0.03%-0.12%0.91%
CAD-0.23%0.19%0.05% -0.31%0.02%-0.07%0.94%
AUD0.07%0.49%0.35%0.29% 0.31%0.23%1.24%
JPY-0.27%0.16%0.02%-0.05%-0.32% -0.10%0.91%
NZD-0.14%0.28%0.15%0.08%-0.23%0.12% 1.05%
CHF-1.18%-0.76%-0.92%-0.97%-1.28%-0.92%-1.05% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD trades close to recent tops around 1.1580

EUR/USD is holding its ground and edging closer to the key 1.1600 level as the week wraps up. The pair’s rebound has gathered momentum thanks to continued weakness in the US Dollar, which came under extra pressure after the preliminary U-Mich Consumer Sentiment reading fell short of expectations for November.

GBP/USD flirts with multi-day highs near 1.3160

GBP/USD has turned higher, climbing to fresh weekly highs above 1.3160 on Friday. Cable’s strong rebound comes as the US Dollar loses further momentum following a disappointing round of US data releases.

Gold looks bid around the $4,000 region

Gold is holding onto its daily gains near the key $4,000 mark per troy ounce at the end of the week. The yellow metal’s recovery has been supported by a softer Greenback and a widespread pullback in US Treasury yields.

Dogecoin rebounds as Bitwise ETF could launch in 20 days

Dogecoin trades above $0.1600 on Friday, stabilizing after a rough start to the week. Eric Balchunas, a Bloomberg ETF analyst, shared that the Bitwise Dogecoin spot Exchange Traded Fund could launch 20 days after the 8(a) form filed on Thursday. 

Week ahead – With the treats potentially over, is risk sentiment about to be tricked?

Risk appetite has not fully enjoyed the treats of a Fed rate cut, strong earnings and trade peace. Fedspeak, the US Supreme Court and US data could challenge the Dollar’s current strength. Aussie and Pound are on divergent paths as respective central banks meet next week.

Dogecoin Price Forecast: DOGE rebounds as Bitwise ETF could launch in 20 days

Dogecoin (DOGE) trades above $0.1600 at the time of writing on Friday, stabilizing after a rough start to the week. Eric Balchunas, a Bloomberg ETF analyst, shared that the Bitwise Dogecoin spot Exchange Traded Fund (ETF) could launch 20 days after the 8(a) form filed on Thursday.