Excerpt from: Forex Analysis
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| March 18, 2009 | | Swissie down in forex trading, thanks to the Swiss National Bank intervention | One of the interesting truths about these times is that most countries want a weak currency right now on the FX market. During times of economic crisis and turmoil, weak currencies are at an economic advantage.
This is just what the Swiss franc is looking for. The Swiss National Bank has done what the Bank of Japan was too afraid to do: Intervene directly in the FX market and force the Swissie lower in forex trading.
Even with Switzerland's surplus, the SNB felt it necessary to essentially devalue its currency. And, while some feel it was a selfish move on the part of the Swiss, others look at the decision in a more altruistic light: Many Eastern European concerns owe money in Swiss francs. With a lower Swissie in forex trading, these economies may see some relief.
| Topic Tags: Bank of Japan, currency trading, forex trading, franc currency trading, FX market, Swissie forex trading, Swiss National bank | |
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