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Euro exchange rate dropped to 1.09: Swiss franc will continue high flight

Just a few months ago, there were 1.15 francs for one euro. But since then, a lot has been going on in the currency pair. The magical mark of 1.10 had already fallen into the second.

New Week, Old Image: Frank continues his flight on Monday morning. Currently it is priced at 1.0889 Euros / Franconia. For the first time since July 2017, Frank broke the 1.09 mark. Spring In Tu was 1.15 francs for one euro.

Is he still with Franken-Heinflog? Last week, finance portal Cash.chai cited forecasters. According to two analysts at the bank Julius Bear, a significant amount of technical tea technical support runs at 1.0950 francs. If it is violated, the authors of the publication of the "Technology Investment Strategy" will see the euro return to 1.06 francs. The brand has now fallen.

SNB under pressure

Martin Neff, 58, chief economist for Refugees, also expects the Swiss franc to continue, as he said in a statement to Sontagsblick in July. "Parity arrives," according to his prediction. A little patience is required: "In 18 months, one franc will cost for the euro."

When the Swiss franc is in motion, the focus is always on the Swiss National Bank. This time again. His comments from Monday morning, the headlines of St. Galler Cantonalbank CIO Thomas Stuckey, "SNB need not be jealous." For two years, SNB had a relatively quiet time. It's over now.

Intervene for more or worse

What should the SNBA do? "SNB has no good options for action," says Stuckey. He clearly sees that there is nothing good for the market forces and nothing to do. However, only if the Swiss franc is not quickly appreciated.

According to Stuckey, the worst option would be for SNBs to reduce interest rates by -1 percent. The rate cut effect will evaporate relatively quickly. Then the SNB. Will face the same problem again.

Probably SNBs are again interfering in the foreign exchange market, Stuckey believes. And flexible, without defending a certain level with all your strength. With the interventions, SNB's balance sheet will continue to grow. But this is less evil than the negative consequences of other alternatives to action. (JFR)

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