Swiss Franc Appreciates Ahead of Referendum

The Swiss franc erased its earlier losses against the US dollar and gained against the euro today. The Swissie was experiencing upward pressure recently on speculations that possible changes to central bank’s policies might lead to issues with keeping the currency-cap.
A referendum will be held in Switzerland on November 30 regarding several changes to policies of the Swiss National Bank, among them a requirement to hold at least 20 percent of assets in gold. Such policy may impede the ability of SNB to keep ceiling on the franc, limiting foreign-currency purchases. Central bank’s Vice President Jean-Pierre Danthine explained that under such regulation “certain measures simply wouldn’t be possible or credible”, including “the setting of the minimum exchange rate of the franc against the euro”.
USD/CHF traded at 0.9553 as of 16:51 GMT today after rallying from 0.9544 to 0.9610 intraday. EUR/CHF dropped from 1.2062 to 1.2055.

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