SNB May Sell Franc ‘Any Day Now,’ Deutsche Bank’s Saravelos Says

The Swiss National Bank may sell the franc “agressively” in the coming days to protect its ceiling for the currency against the euro, Deutsche Bank AG said.

“Central bank intervention could emerge any day now given where we are,” George Saravelos, a foreign-exchange strategist at Deutsche Bank in London, said in an interview. “How they act will influence the way investors think they will intervene going forward.”

The franc traded little changed at 1.2064 per euro at 8:01 a.m. London time, approaching the cap of 1.20 set by Swiss policy makers in September to reduce the risk of deflation and help exporters. The Swiss currency reached 1.2474 per euro on Oct. 19, the weakest since May.

The SNB will enforce the limit “with the utmost determination and remains prepared to buy foreign currency in unlimited quantities,” governing board member Jean-Pierre Danthine said at an event in Zurich on Jan. 24.

“It makes more sense to do it aggressively,” Saravelos said. “That way they would have investors on their side,” seeking to sell the franc in anticipation of central bank intervention, he said.

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