The Swiss franc was mixed after today’s policy announcement from the Swiss National Bank and the release of the Producer Price Index. The currency gained on the euro and the Japanese yen but fell versus the US dollar and the Great Britain pound.
Interest on sight deposits at the SNB is to remain at –0.75% and the target range for the three-month Libor is unchanged at between –1.25% and –0.25%
The central bank maintained inflation forecast for 2017 at 0.3% but revised projections for 2018 and 2019 by 0.1 percentage point to 0.3% and 1.0% respectively. As for economic growth, the SNB predicted a 1.5% increase this year and stated:
Available economic indicators point to slightly more robust economic momentum.
The bank continued to complain that the franc is “significantly overvalued.”
The PPI fell 0.3% in May from the previous month. That is compared to the predicted drop by 0.1%.
USD/CHF rallied from 0.9707 to 0.9754 as of 18:06 GMT today. EUR/CHF dropped from 1.0887 to 1.0871. CHF/JPY jumped from 112.76 to 113.70. GBP/CHF advanced from 1.2374 to 1.2437, touching the high of 1.2465 intraday.
If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.