2016-11-07 15:46:11

It seems that the SNB continues to curb excessive rise of national currency. Today’s data showed that Swiss FX reserves amounted to 630 billion Swiss francs in October, which is by 2 billion francs more than in September. SNB sells franc, buying other major currencies. The SNB still thinks that the franc is overbought, and confirms possibility of intervention into the currency market. The SNB has never announces about this measure neither before nor after the intervention. This fact helps to curb excessive rise in franc.

In September the Swiss National Bank left the deposit rate unchanged at -0.75%. 3-month LIBOR rate was also left unchanged (-0.25%; -1.25%). In the following up comments the SNB said that negative interest rate and the readiness of the Central Bank to intervene into the currency market are required to reduce attractiveness of the Swiss franc and ease pressure on the national currency. Next meeting of the SNB will be held on December 15, immediately after the two-day meeting of the US Fed on 13-14 December.

At the same time, deflationary pressure on the Swiss economy continued in October. Consumer price index (CPI) in October fell by 0.2% against the same period of a year ago. Prices of import fell by 0.7%. Today, the pair USD/CHF has sharply grown, largely due to the general strengthening in the USD in the foreign exchange market.

Today, US news will become known as follows: at 17:00 (GMT+3) index of labor market conditions, which incorporates 19 indicators of this sector. Labour market indicators are the key indicators of economic development in the United States. However, 3 of them are of the great importance (Non-Farm PayRolls, unemployment rate and hourly earnings).
At 23:00 – a report on the consumer loans in the United States in September will be released. However, all attention of the financial market participants will be focused on tomorrow's Presidential election in the United States. The results of the election will have impact on future economic policy of the United States, and the entire global financial markets.

USD/CHF