Thursday December 15, 2005 - 11:24:42 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
SNB delivers rate increase
The Swiss franc strengthened towards 1.2750 against the dollar on Wednesday after the record US trade deficit, but the US currency recovered back above the 1.28 level. The Swiss currency strengthened back through 1.54 against the Euro on Wednesday, but retreated after the National Bank decision.
The pressure for a covering of short positions in low-yield currencies and a closing of commodity trades will offer further near-term franc support and trading will remain choppy over the next 24 hours.
The National Bank increased interest rates by 0.25% at Thursday's meeting, the first change for 15 months. The National Bank has indicated that it will pursue a policy of further rate increases over the next few quarters, but there will be some short-term disappointment that the bank did not sanction a 0.5% rate increase. The bank was optimistic over growth, but there was a slight downgrading of inflation forecasts. Overall interest rate expectations are likely to be downgraded slightly and this will lessen the potential for near-term franc gains.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."