SNB Stayed Out of FX Markets Despite Third-Quarter Franc Rally
USD/Swiss Franc analysis: After the Swiss National Bank unexpectedly cut interest rates by 0.50%, the Swiss Franc declined.
On Thursday (December 12), during the European session, USD/Swiss Franc rose by 0.8% in the morning, reaching a two-week high, after the Swiss National Bank unexpectedly cut interest rates by 50 basis points (from 1% to 0.50%), while the market generally expected a 25 basis points cut. This marks the fourth policy easing in 2024 after three 0.25% cuts in March, June, and September, and it is also the largest rate cut in nearly a decade. The Swiss National Bank indicated it will continue to monitor the situation and take appropriate actions to maintain price stability and keep inflation within the target Range of 0%-2% (the inflation rate in November was 0.7%).
The Swiss Franc Central Bank has implemented its largest interest rate cut since the "Black Swan" event in 2015, nearly returning to a zero interest rate.
① The extent of this interest rate cut exceeded the expectations of most economists; ② The mainstream view holds that, faced with low inflation and the pressure of the European Central Bank continuing to cut rates, the Swiss National Bank will return to "zero interest rates" next year; ③ Due to the weakness of the European economy, political crises in France and Germany, and the risk effect from Trump, funds are flowing into the Swiss Franc for safe-haven and speculation, and the Swiss Franc/Euro has reached a new high in nearly 10 years.
Under the dual pressure of the strong Swiss Franc and low inflation, the Swiss National Bank is gradually moving towards zero interest rates.
As the Swiss National Bank may lower borrowing costs this week, the Swiss Franc's two-year period of positive interest rate policy is nearing its end.
Swiss Franc Could Turn Weaker as Rate Differentials Outweigh Safe-Haven Demand -- Market Talk
SNB Set for Half-Point Cut After Inflation Data Undershoots Forecasts -- Market Talk
Daily Investors : Did you see how we just appointed a Russian as American Ambassador. I think Trump is getting leveraged by someone or something
152343525 : no this is bigger- Europe has realised it may be on its own. Trump has China to worry about. Every US ally is at this moment reassessing how much more they will need to be spending in the decades ahead.
PhotoSynth : Keep whistling past the Graveyard!……. Trump is decimating EVERYTHING about this country at lightning speed. Anybody that believes ONE SINGLE member of his completely corrupt cabinet is nothing short of a fool.
Im sorry, but economics dont work that way….period, full stop. The tariffs being imposed around the globe are suicide for the American people. Do the math !!!…….I have, and there is not a scintilla of a possibility of ANY of their bullshit coming to pass.
America is being destroyed by the DOMESTIC ENEMY WITHIN, giving aid and comfort to our enemies from outside,
Last time I checked, this was constitutionally called TREASON!
The punishment for treason is DEATH. We are being whitewashed with lie after lie after lie.
All the while Trump and his turds are aguing vociferously,….. “ thats not true.”
Yes it is. Anyone with a brain can tell you this is a fact. And Lutnik…..oh my God,….. what a formidably shameless idiot.Ill debate him anytime, any place and destroy him!
I cant be completely sure like all of Trumps unuseful idiots,…..but yhere is a fair chance that we will not survive this without a major depression,…..not recession…….depression.
DO THE MATH!, and not pieces of it,…… ALL OF IT! … and heres the short story of what you get within 12-24 months. Billionaires who have increased their % of American wealth by unheard of multiples. A midlle class that has had to suddenly rush to sell their homes because prices are so high on all of their day to day consumer goods and services, that they CANNOT afford to even come close to being able to afford both……Guess which one has to go? Now they have no growing assetts that they own. And heres the one NOONE wants to utter a syllable about…….Those in the bottom 32% of the country’s income distribution will be transitioning from living in subsidized housing to living in the streets, with NO medical coverage, as Medicaid is INSANELY slated to be eliminated, and finally,……food inflation will become irrelevant, because with no money, no resources,…..the only way theyre going to be able to eat anything is to steal it !
These massive disruptions to the way our economy is structured are UNSUSTAINABLE, and cant just be turned around with the snap of finger. Legally they cant be implemented at the snap of a finger either,….. but in our magical mystery world , implemented by Trump, that of no matter,….. as he does anything and EVERYTHING illegally, dropping nuclear bomb after nuclear bomb on our economy at breakneck speed. This man MUST be stopped….. NOW!, not 4 years from now. If allowed to persist throughout a full term, this country will be a shadow of its former self, with everybody going “ what happened?”
We are on the precipice of “running” into an irretrievable situation. As while we are asleep at the wheel of this out of control careening trainwreck, the rest of the world will have long since been filling in the massive gap that that we left wide open through our own ignorance, gullibility and excessive greed.
A 200 basis point set of cuts in fed funds rates will do NOTHING to “ stop” this. As these only work in open free trade markets, yet do little insofar as fundamentally changing those things that need to be changed in order to induce their intended change. And the fact is, we are no longer living under the the structure og free capital markets.
Anybody that is stupid enough to believe that Donald Trumps sole motivation for these insane destabilizing tariffs is “ our phentynyl problem” at the northern and southern borders is simply “STUPID”, especially those listening to these formerly, “ thought to be useful” idiots who are supposed to be intelligent, reasonable pundits ”on CNBC as they sit there like hallucinating morons, failing to push back with even the slightest injection of empiracle data.
Donald Trump believes that anyone dumb enough to buy and use any illicit drugs that are laced with phentynyl, desrve to die. He doesnt give a “ RATS ASS” about ANY of these people. We’re talking about someone who invariably screws over EVERY SINGLE person he calls “Friend”.
Wake up and smell the coffee. Either Trump gets taken out…….or soon enough,…..the rest of us will,…..and with no reasonable way to dig out og ghe Grand Canyon of a sink hole that Trump is digging with a backhoe the size of those used at giant mining operations. Think Im hyperbolic or exagerating?……. Save this note, bring it out in the 12 - 24 months I talked about, and lets take a hard long look at “exactly” what’s happened, and just how it came to pass…….. God speed, and God help us all!