The currency of Switzerland is not under as much duress these days, which the chief of the central bank of Switzerland correlated with his belief that the sovereign debt scourge tearing through the euro zone is losing momentum, Reuters reports.
Customarily a safe-haven monetary unit for wealth during challenging economic times, the Swiss franc will keep the ceiling rate of 1.20 per euro. Thomas Jordan said during media interviews that the institution he leads will intervene to preserve the strength of the monetary unit, but he did not go into specifics.
"We don't give any information on interventions but if you look at the exchange rate you can see that the pressure is less than it was," the chairman said, according to Reuters.
After its quarterly meeting, the SNB underscored its interest in preserving the ceiling against the euro.
The chief noted a German court's Wednesday ruling that the regional bailout fund is constitutional as well as the European Central Bank's intention to purchase government bonds.
One method of preserving the strength of the franc is by purchasing foreign exchanges in "unlimited quantities," Bloomberg reports the Swiss National Bank said.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
