Swiss Frank growth sparks bets to return to negative interest rates

Swiss Franc will have to shelter the country’s global trade confusion, and the country’s central bank will have to lower the currency to zero and below the currency to lower or below interest rates.

The financial market historically reached a close record for the dollar in the form of a political and economic stability of the Alps, this week is close to the Greenback, which is about SFR0.80 since the shock in 2015.

This tried to limit the currency to support the export and heavy economy without retreating the United States, which threatens Switzerland, which has high tariffs from the United States.

The Central Bank of this “crosswalk” put in a “amazing challenging” position in a “amazing difficult” position.

“The Swiss government does not want great disinfacing pressure, and therefore annoyed,” he said.

The short-term government debt was immersed in the negative area for traders to respond to the Swiss National Bank’s interest rate cut. Two-year Swiss productivity reflecting expectations for interest rates is less than zero on Friday.

The rapid assessment in Frank is risking deflation for Switzerland, analysts say, US President Donald Trump’s trade war has been aggravated by the growth of the trade war.

31 percent, “mutual” tariffs placed in Switzerland in the beginning of this month – before the suspension within 90 days – surpass the money caught in the EU. Switzerland, more than 10 percent of exports, trust in US consumers.

The situation has made the government a diplomatic attack.

Swiss President Karin Keller-Sutter also announced a tariff break before calling the trump hours in Trump hours. This week, US Treasury Secretary Scott Bessent met with Economy Minister Scott Bessent to meet with Economy Minister Scott Bessent.

Switzerland trying to maintain the power of historically, is not a stranger to acute actions. In January 2015, SNB suddenly received the growing money of the currency, the franc’s value was suddenly politically.

Analysts say Bern fears are a currency manipulator brand once again, if the fears are severely intervened in the markets to return in Franc.

Switzerland was added to the US list of “currency manipulators” in the last weeks of the First Trump President due to the intervening of the cushion of financial conflicts from the coronavirus pandemic. This was removed from the list under the Biden administration.

Frank has also opposed the euro by putting the export-reliant country in a difficult situation with the largest trade partner.

The SNB has already moved the main percentage to 0.25 percent, and more cuts are also considered a diplomatically reliable choice to arrest the Franc’s rise.

SNB has been higher than zero for eight years – for partially the suspension of the rising fra – before raising the positive area in 2022, before raising the explosion of the pandemia before he lifted them in a positive area.

“If SNB is dissatisfied with a powerful frank and is limited to FX interventions, low prices are the only choice,” said Francesco Pesole, FX Strategist.

Chief economist Stefan Gerlach, EFG Bank, said, “Good interest rates”, the currency interference may also be needed.

Gerlach has lowered the chances of Switzerland labeled a currency manipulator again. In a sense of “adults in the room” in the US Treasury Department, there is no problem.

“If you turn the exchange rate down to gain a competitive advantage, there may be a problem. But the increase in your currency is not a problem if you try to be gentle.”

Markets, about 80 percent of zero rate in the next meeting in June, according to a zero chance, this year can transform in negative areas, and swaps were stated.

Annual inflation is about 0.3 percent, below zero at the lower end of the target range of the Central Bank.

The Swiss Central Bank is “Definitely concerned,” said Gregor Kapferer, the leader of the Swiss bonds, claiming that more intervention will be “last vehicle”, he said.

“The last Trump manager was called a currency manipulator, but no results were really given. Now Trump, I think SNB will be more cautious.”

Athanasios Vamvakidis, a global head of the American G10 FX strategy, suggested that SNB’s interventions are “leaning on the wind.”

“It is difficult to imagine that the US leadership will complain some interventions,” the approach said that this approach appears more than negative interest rates.

By setting the shock of 2015, the dollar is closing in 2011 in 2011 in 2011.

“Maybe he needs a calmer world than the buk” Frank “said Société Générale Juckes. “The danger is that history is becoming more strengthening over time.”