EUR/CHF slides to its weakest level since July 2017
As global developments continue to run its course down this path, franc strength is somewhat inevitable and the best the SNB can do is to smooth the appreciation in the currency.
There has been plenty of chatter about potential intervention as EUR/CHF trades close to the 1.1000 handle but for now, the SNB seems to be standing clear of that level or at least isn't seen actively defending the level.
However, when you pair the above move in the Swiss currency with more signs of inflationary pressures weakening, surely the central bank will feel more invigorated to act sooner rather than later.
The SNB next meets on 19 September but given how global developments are taking a turn for the worse and potentially continuing its rapid decline, Jordan & co. may not wait patiently on the sidelines before acting.
Intervention is definitely something they'd be willing to pursue - as have been in the past - but after the January 2015 fiasco, you can never say never with the SNB.
Further rate cuts look to be almost certain at this stage but they may not necessarily wait until 19 September to act. As such, just be wary of any potential surprises they may pull in the mean time.
