Swiss interventions and market dynamics

illustration: dnb markets dealingroom

(10.09.2012) The Swiss central bank intervenes to avoid further strengthening of the Swiss franc.

But increasing reserves means an increasing need for diversification. This increases the pressure on other currencies, and changes the dynamics of the FX market. But the Swiss diversification is not the reason why currencies deemed as safe have strengthened, rather a symptom of the flows we observe in financial markets at the moment. We expect the uncertainty to prevail, the Swiss central bank to continue to intervene and demand pressure to remain in safe havens.

» Download the analysis about the Swiss interventions (pdf)