Latest reserves data from the Swiss National Bank now out 7 March
- CHF 731bln prev
Foreign Currency Reserves are the foreign currency deposits and bonds held by the SNB and monetary authorities. It provides insight into the SNB's currency market operations, such as how actively they are defending the franc's exchange rate against the euro.
We know the SNB are ever present keeping an eye on markets to weaken the franc.
We also know that they are long of USDSCHF at rubbish levels through the intervention with the pair falling so far on the general USD decline in recent months. I observed in a post in Feb that with 35% of fx reserves in USD the SNB had a problem on their hands with a long and wrong position having intervened on many occasions over the past year or so only to see USDCHF fall from 1.0200 to 0.9247 lows. Q4 reval came in at 0.9869 vs 0.9919
I've noted a line in the sand between 0.9300-30 in my order board posts lately and I expect that to be Jordan & Co. Would also be borne out by EURCHF holding 1.1500 and rallying up to 1.1660 helped by some general EUR demand.
Full SNB release here
