POil and monetary developments in America and Europe have helped shift the currency market. However, it is not yet clear which target currency rates will take on a medium term.
For example, investors use speculation about reducing monetary policy in the & quot; eurozone & quot; a Swiss franc. In exchange for this, a Euro at least 1.0968 Swiss franc sometimes costs as little as two years ago. Global economic deterioration, trade conflicts, fears for a fierce Brexit and the Iranian conflict drove investors into safe currency ports, said Thomas Gitzel, chief economist at VP Bank.
However, the expert does not expect the Swiss currency to remain below the 1.10 mark. The European Central Bank would have to take aggressive measures on Thursday with unexpected measures.
Investors estimate the chance that the European Central Bank will cut the roundabouts on Thursday after about 50 percent. "The nervousness of the side of the Swiss National Bank (SNB) should grow," Gitzel said. However, she has an unfavorable situation: tar interest rates are already negative, and interventions are & # 39; a currency mark on & # 39; a balance balloon. They could also be directed by American President Donald Trump with such a move. "It is probably the SNB will wait first."
The SNB is interested in having the franc so weak as to support the country's export-oriented economy. To achieve this goal, the negative interest rates introduced from minus 0.75 percent and re-entered the & # 39; s foreign exchange.
The weak of the euro is also helped by the strong dollar. The US currency is benefiting from a similarity dispute over state budgeting. The day before, the US government and Congress representatives agreed on a two-tier budget package. It also sets up a debt ceiling. The agreement has a potential stop for some government companies.
Significant movement was also seen in the British pound. In the United Kingdom, the new prime minister and Tory chairman were announced Tuesday afternoon. The successor of Theresa May was Boris Johnson. Before the announcement of the staff, the pound fell to & # 39; at first not significantly, but returned to the announcement. Recently, however, profits came out again.
"Boris Johnson, the new leader of the Conservative Party, faces the difficult task of reconciling his Brexit promises with the reality of EU relations," Commerzbank economist Peter Dixon said. "Although the perspective of a disruption in Brexit has increased in October, we still estimate the probability well below 50 percent."