Even as the world’s financial markets await a policy decision from the US Federal Reserve Bank, arguably the most important central bank on the globe, other central banks continue to grind on. Earlier today, the Swiss National Bank (SNB) announced that it would maintain its target range intact at the existing 1.25% to -0.25%; that was largely in line with the outcome of a recent poll of analysts. The SNB had said that they based their decision on the need to devalue the Swiss Franc which they see as significantly overvalued. The SNB also said that, besides the negative deposit aspect, they would intervene as and when needed to ensure that Swiss Francs are less appealing to investors.
As reported at 11:53 am (BDT) in London, the EUR/CHF was trading at 1.0955 Swiss Francs (a loss of 0.10%), while the USD/CHF was trading at 0.9688 Swiss Francs (down 0.26%). Earlier this year, the SNB eliminated the exchange rate cap on the EUR/CHF which had been set at 1.20 Swiss Francs; since then, the pair has ranged between 0.8423 and 1.2160 Swiss Francs.
Euro Lifted Ahead of FOMC
In Europe, the Euro edged higher as investors await the Fed’s decision later today. Bets have grown that the Fed will likely hold off on raising rates in light of the economic situation in China and the risk of a global slowdown. The EUR/USD was 0.21% higher and trading at $1.1312.