HomeForex MarketSwiss Franc (CHF) Spikes on Shock SNB Fee Hike, EUR/CHF Heading to...

Swiss Franc (CHF) Spikes on Shock SNB Fee Hike, EUR/CHF Heading to Parity?

CHF, EUR/CHF Value Evaluation & Information

  • CHF Soars on SNB Hike
  • Door Open to EUR/CHF Parity

CHF Soars on SNB Hike

A shock hike by the SNB at the moment because the financial institution responds to rising inflation. This marks the primary hike in 15 years from the central financial institution and never solely that, the SNB opted for a 50bps charge hike, with the coverage charge rising to -0.25% from -0.75%, going in opposition to expectations for the financial institution to go away financial coverage unchanged. Moreover, the SNB states that additional will increase within the coverage charge can’t be dominated out to stabilise inflation.

In response to the shock hike, the Swiss Franc is hovering throughout the board. In the meantime international bond yields have additionally edged greater as even the usually dovish central banks change to an aggressively hawkish stance. That stated, with EUR/CHF again beneath 1.02, this opens the door in the direction of parity.

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?

EUR/CHF Chart: Hourly Chart

Swiss Franc (CHF) Spikes on Shock SNB Rate Hike, EUR/CHF Heading to Parity?

Supply: Refinitiv

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