Three months after dropping the bomb and removing the floor under 1.20, the Swiss National Bank takes measures to try to limit the strengthening of the franc.
The decision to tighten the negative deposit rates, already tightened back in January, has sent EUR/CHF higher.
The Bank has announced that less exemptions will be available from May 1st: these include public entities and some pension funds. There are still some governmental institutions that are exempt.
EUR/CHF was losing some ground in recent weeks, as investors were not too deterred from the negative interest rates and the occasional interventions by the SNB.
This move sent the cross above 1.03, reaching a high of 1.0366, but this isn’t too strong: at the time of writing, we are back to 1.0330.
And this time, the impact on EUR/USD is limited. The major pair is actually sliding as concerns about Greece join some dollar strength. The Swiss impact is not huge this time.
More: SNBomb – Reactions from 75 forex brokers
