Swiss Central Bank Intervened Less due to ECB

The Swiss National Bank’s foreign exchange reserves hit 71 percent of annual output in August, with the pace of the rise slowing in a sign that less central bank intervention was needed to enforce its cap of 1.20 per euro on the safe-haven franc.

The SNB had 418.430 billion Swiss francs in reserves as of the end of August, compared with a revised 408.605 billion in July, according to preliminary data provided to the International Monetary Fund on Friday.

The markets have grown less worried in recent weeks about the threat of the euro zone breaking up, on hopes the European Central Bank will take steps to lower borrowing costs in some highly indebted countries and ease the crisis.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza