swiss franc

SNB: And this is only the beginning

MADRID | The Corner | Maximum uncertainty shook the global markets today, after the Swiss National Bank unexpected double move of removing the controverted minimum exchange rate to the EUR of 1.20 and lowering interest rates to –0.75%. Volatility will continue in the coming weeks “as unhedged Swiss companies may start hedging and the SNB may come up with additional measures like enforcing the use of negative interest rates to strengthen other currencies against the CHF,” explained UBP’s Swiss equities expert Martin Moeller. Some analysts believe the strategy might be too radical and “counterproductive for the ECB.” Stocks in Switzerland fell about 10 percent, while broader European indexes rose modestly.