{"id":7711,"date":"2010-03-19T08:22:39","date_gmt":"2010-03-19T12:22:39","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7711"},"modified":"2010-03-19T08:22:39","modified_gmt":"2010-03-19T12:22:39","slug":"swiss-central-bank-surprises-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/19\/swiss-central-bank-surprises-market\/","title":{"rendered":"Swiss Central Bank surprises market"},"content":{"rendered":"<p>Comments from SNB board member that rates will not be able to stay  low indefinitely caught investors by \u00a0surprise. Lately some positive  signs have emerged from Switzerland showing private consumption rose  \u00a02.05% and unemployment topped out at 4.5%. In the SNB meeting last week  the SNB reiterated it is \u00a0committed to keep the CHF stable against the  Euro to tackle the weak exports and support the Swiss \u00a0industry. In  addition the Central Bank also pointed some signs of economic recovery\u00a0  are emerging signaling \u00a0Swiss benchmark rates could rise from their  record low of 0.25%.Neverthless with the Swiss economic \u00a0recovery still  threatened by the strengthening CHF and inflation figures still within  rage investors were \u00a0betting rate hikes in Switzerland are not  imminent.\u00a0 However the comments made yesterday from the SNB member that  the market should get used to higher rates in the future spurred bets  that higher rates in Switzerland might be closer then previously  assessed. Investors reacted rather swiftly to the comments and curbed  long Dollar bets against the CHF and crowded heavy bids on EUR\/CHF  pushing it below 1.44. <a href=\"http:\/\/www.etoro.net\/forex-news\/technical-opportunities-10923.html\">Click  for CHF technical analysis<\/a><\/p>\n<p><strong>Rate hikes in Switzerland still look limited <\/strong><\/p>\n<p>Although the Swiss central bank is keen to show the SNB will not  allow any bubbles to take place, folding back emergency measures and now  suggesting higher rates, the SNB cannot yet afford a long term  tightening move. The Swiss economy is highly dependent on the EU as the  EU posses the largest trading partner of Switzerland. Swiss EU trading  partners such as Germany are experiencing flat growth and weak job  market a continuous tightening move could dent Swiss recovery very  rapidly, weighing on Swiss exporters and pushing down consumer spending.<\/p>\n<p><a href=\"http:\/\/www.etoro.com\/B218_A16627_TClick.aspx\" target=\"_blank\"><strong>Daily Forex Market Analysis provided by eToro<\/strong><\/a><strong> <\/strong><\/p>\n<p>Disclaimer: Trading in the Foreign Exchange market might carry    potential rewards, but also potential risks. You must be aware of the    risks and are willing to accept them in order to trade in the foreign    exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n<p><strong><a href=\"http:\/\/www.etoro.com\/A16627_TClick.aspx\" target=\"_blank\">\u00a9 2009 eToro Blog.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comments from SNB board member that rates will not be able to stay low indefinitely caught investors by \u00a0surprise. Lately some positive signs have emerged from Switzerland showing private consumption rose \u00a02.05% and unemployment topped out at 4.5%. In the SNB meeting last week the SNB reiterated it is \u00a0committed to keep the CHF stable &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/03\/19\/swiss-central-bank-surprises-market\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Swiss Central Bank surprises market&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7711","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=7711"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7711\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}