Franc Rises Ahead of SNB Meeting, Loses Part of Gains

The Swiss franc gained a little today ahead of this week’s policy meeting of the Swiss National Bank. The currency trimmed its advance versus the US dollar and the euro as of now, but retained gains against the Japanese yen.
The SNB will announce its policy decision on June 20. Chairman Thomas Jordan was talking previously about such unconventional measures as negative interest rates or raising the ceiling for the franc (which now stands at 1.20 per euro).
Truth be told, most market participants do not expect that the SNB will make any significant move. Many economists believe that there is no reason for the central bank to intervene as long as the franc remains far away from the bank’s cap. And the threat of housing boom may discourage the SNB from overly aggressive actions.
USD/CHF was at about 0.9232 as of 1:31 GMT today after falling from 0.9224 to 0.9213 earlier. EUR/CHF fell to 1.2316 before rebounding to the opening level of 1.2329. CHF/JPY went up from 102.36 to 102.78.

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