Swiss franc surge sparks bets on return to negative interest rates

The Swiss Franc has risen to the dollar against the dollar, as investors are in a hurry to reflect on world trade, lightning bets that the country’s central bank must drop to the interest rates below.

During this week, the currency against the dollar over the dollar has reached almost a record force against the dollar.

It has been in touch with policy makers, as they seek to curb the currency to support the difficult export economy without feedback from the United States, which already threatens Switzerland with high tariffs.

The Central Bank of these “Crossroads” laid the “Stunning difficult” position, said Kit Juckes, SOCIÉTÉ GÉNÉRALE Home FX Strategist.

“The Swiss government does not want such a large disinfectant pressure, and so they are disappointed,” he added.

In recent days, the yield of public debt has fallen into a negative territory, as traders bet that the Swiss National Bank will respond with interest rates. On Friday, the two-year Swiss yield reflects for interest rates, which are sold below zero below zero.

Fast appreciation for Switzerland causes deflationary shocks, says analysts that escalate US President Donald Trump’s growth.

At the beginning of this month, “mutual” tariffs on Swiss products at the beginning of this month, up to 90 days, surpassed EU charges. Switzerland relies more than 10 percent of exports to US consumers.

The situation has pushed the government to the diplomatic attack.

Swiss President Karin Keller-Lies, who also served as a telephone call before Trump’s hours before he announced the tariff pause. This week, he left for Washington with the Minister of Economy for a meeting with the Secretary of the US Treasury Scott Besse, in which he said that the possibilities of cooperation between our two countries were discussed.

Switzerland, who has historically struggled to contain its currency, is not unfamiliar. In January 2015, SNB suddenly suddenly the value of Francia to counter euro, sending it to currency.

Analysts say that Bern’s fears make the United States again the currency manipulator brand if it strictly intervene in the markets to re-equip the franc.

In recent weeks of the first Trump’s presidency, Switzerland has increased the US Currency Manipulators in the USA list, in particular, due to the intervention of loading financial turmoil. It was removed from the list under Biden’s administration.

Frank was also resurrected against the euro, leaving the export country in critical condition with its largest trading partner.

SNB has been moved faster than its peers, reducing its main interest rate by 0.25 percent, and further reductions are seen as the rise of Francian.

SNB has been a low level of zero for eight years to stop partially, before putting them in a positive area in 2022, to fight the inflation explosion.

“If SNB is dissatisfied with a strong frank and is constrained by FX interventions, the low level is the only option,” says FX strategy.

EFG Bank’s chief economist Stefan Orelach said that negative interest rates “can happen”, adding that currency intervention may be necessary.

Gerlach played the chances of Switzerland, who again called the monetary manipulator. He said that there is “adults” in the US Treasury Department. He said this is not a problem.

“May be a problem if you drive the rate to get a competitive advantage. But your currency probability is not a problem, and you are trying to measure its ups. ”

During the next meeting in June, the markets are the candidate, the consequence of which falls at about 80% interest rates on zero, with a small possibility, it can move to a negative space within a year.

The annual inflation is sitting by about 0.3%, already in the lower level of the lower level of the Central Bank to 2%.

The Central Bank of Switzerland is “definitely worried,” says Gregor Capers, a larger resistance in Vainobel.

“During the last of the last victory, they were called a currency manipulator, but there were no facts. Now Trump follows that it will be much more careful here. “

But the G10 G10 FX G20 strategy, Athanasius Vamakdis suggested that SNB “turn against the wind” with some interventions.

“It is difficult to imagine that the US administration will complain about some intervention,” he said quickly appreciation in the currency, saying that this approach seems more probable than negative interest rates.

Leaving aside the shock of 2015, the dollar ends in its 2011 in 2011, low against Frank.

“Maybe [the franc] It just needs a more relaxed world than this, “said the Juckes of Social Geneari. “It is the danger, history says that over time it is getting stronger.”