SNB may intervene in EUR/CHF 'as early as this week'

The EUR/CHF floor comes under pressure as the pair trades uncomfortably close to 1.20

Swiss flag
SNB may be forced to act

The Swiss National Bank (SNB) may be forced to intervene in currency markets as uncertainty about the outcome of the country's gold referendum places pressure on the Bank's floor in EUR/CHF.

A Yes vote will make it compulsory for Switzerland's central bank to increase its gold reserves to 20%, from the current 8%. The SNB has already indicated this move will force it to buy gold every time it buys euros, therefore constraining its ability to maintain its floor.

This uncertainty is spurring

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