Negative Rates not Off the Table for Swiss Central Bank

The Swiss National Bank does not rule out the use of negative interest rates to defend its cap on the Swiss franc and ward off deflation, Chairman Thomas Jordan said on Monday.

The central bank imposed a ceiling on the value of the franc in September 2011, after investors fleeing the euro zone crisis bid the safe-haven currency up to record levels, threatening to snuff out inflation.

Jordan reiterated the SNB’s quarterly statement of Sept. 18, which he was presenting at a news conference in Geneva, and said the central bank was ready to take additional action immediately, if necessary, to defend its lid on the franc at 1.20 per euro.

“There is no measure that is excluded, a whole series of measures are discussed,” Jordan said. “Recently there has been a discussion of negative rates in the news. These are also not excluded.”

Jordan cautioned the risks of deflation have grown in Switzerland, citing the SNB’s 2016 inflation forecast of 0.5 percent, even with rates at zero for the next three years.

“As a result, the risk of deflation increases,” Jordan said.

Jordan repeated the central bank has not had to intervene in foreign exchange markets to defend the cap since September 2012.

via Reuters

MarketPulse

The post Negative Rates not Off the Table for Swiss Central Bank appeared first on FX FOREX.

via WordPress http://ift.tt/1mHntod



Forex, bank, central, negative, rates, swiss, table

Technical analysis of USD/CHF for March 28, 2014

Show full picture Overview: USD/CHF is expected to trade in a higher range. It is supported by the dovish Swiss National Bank’s monetary policy stance, positive dollar sentiment, and franc sales on the buoyant GBP/CHF, AUD/CHF, NZD/CHF, and CAD/CHF crosses. But the USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross and positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics is bullish, five-day moving average is above 15-day MA and is advancing. Trading recommendation: The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point…

via Forex analysis review:

Overview:

USD/CHF is expected to trade in a higher range. It is supported by the dovish Swiss National Bank’s monetary policy stance, positive dollar sentiment, and franc sales on the buoyant GBP/CHF, AUD/CHF, NZD/CHF, and CAD/CHF crosses. But the USD/CHF gains are tempered by the franc demand on the soft EUR/CHF cross and positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics is bullish, five-day moving average is above 15-day MA and is advancing.

Trading recommendation:


The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8910 and the second target at 0.8930. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8810. A breach of this target will push the pair further downwards and one may expect the second target at 0.8785. The pivot point is at 0.8835.

Resistance levels:



0.8910



0.8930



0.8960

Support levels:



0.8810



0.8785



0.8765

The material has been provided by InstaForex Company – www.instaforex.com

For more info: Technical analysis of USD/CHF for March 28, 2014

Forex analysis review

Technical analysis of USD/CHF for March 28, 2014

The post Technical analysis of USD/CHF for March 28, 2014 appeared first on FX FOREX.

via WordPress http://ift.tt/1ofiRWm



Personal Finance, cad, daily, eur, group, national, overview, swiss, trading

Officials not Macro Economics Driving FX | Zero Hedge

This month the main drivers of the foreign exchange market have been official developments rather than macro-economic factors that often shape investors’ decisions.In addition to Russia/Ukraine and China developments, it was the ECB’s failure to take more measures to address the tightening of financial conditions, and falling inflation, that finally managed to convincingly push the euro above the $1.38 area that had capped it since last October.It was also comments by Draghi on March 13 that have thus far put the euro’s high in just below $1.3970. This past week, it was a seemingly more hawkish Federal Reserve than expected, with the help of new Chair stripping the veneer of the traditional strategic ambiguity of language (“considerable period = around six months), that was …

via fx – Google Blog Search:

Weekly outlook for the major currencies, from a technical perspective.

For more info: Officials not Macro Economics Driving FX | Zero Hedge

fx – Google Blog Search

Officials not Macro Economics Driving FX | Zero Hedge

The post Officials not Macro Economics Driving FX | Zero Hedge appeared first on FX FOREX.

via WordPress http://ift.tt/1jnc2f2



Forex, australian, dollar, forex, japan, japanese, market, russia, swiss, trading, ukraine, zealand

New Phase in FX has Begun | Zero Hedge

In general, the price action in recent weeks has been characterized by weaker equities, firmer core bonds, heavy emerging markets and a firmer yen and US dollar. Our technical analysis suggests that that phase has ended and a new one has begun.Many investors had been looking for a correction as new opportunity to increase exposures. They were chopping at the bit, so to speak, to jump back in. It appears they began to do so in the second half of last week.The euro’s recovery was impressive, not so much because of the magnitude of the move, but rather that it gained at all given the events. The ECB did change policy, which many had expected, but clearly the door is open to action in a …

via fx – Google Blog Search:

A technical look at the currencies. The phase that has characterized the first few weeks of the year has ended and a new one has begun.

For more info: New Phase in FX has Begun | Zero Hedge

fx – Google Blog Search

New Phase in FX has Begun | Zero Hedge

The post New Phase in FX has Begun | Zero Hedge appeared first on FX FOREX.

via WordPress http://ift.tt/1fKrTC6



Forex, australia, australian, chinese, court, forex, japanese, market, mexico, rsi, swiss