Stage Set for Swiss Franc Rally as SNB Saves Policy Ammunition
- Central bank likely being ‘realistic’ about currency: Rabobank
- German manufacturing slump adds to demand for haven currency
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Currency traders may have a green light to push the franc higher after the Swiss National Bank refrained from joining global central banks in easing policy and as Europe’s economy worsens.
The franc has rallied since Swiss policy makers last week projected lower inflation and growth yet did not follow the European Central Bank and Federal Reserve in cutting interest rates. The SNB may be keeping its powder dry to deal with further currency gains, given rates are already at record lows.