⚡ “SNB has increased readiness to intervene in forex market”: SNB Schlegel hints at near-term intervention

The Swiss National Bank has signaled heightened readiness to intervene in foreign exchange markets, according to Chairman Martin Schlegel speaking Wednesday during European trading hours. The announcement marks a significant shift in the SNB’s forward guidance on currency market operations and comes amid ongoing franc strength pressures. Schlegel’s comments suggest the central bank is prepared to actively manage exchange rates in the near term to counter unwanted appreciation that could threaten Swiss export competitiveness and inflation targets.

The statement immediately affects Swiss franc positioning, particularly CHF crosses against the euro and dollar. Traders holding long franc positions face increased intervention risk, while exporters may see potential relief if the SNB follows through with market operations. Currency volatility could spike as markets test the central bank’s resolve in coming sessions.

FXnCO Insight

Traders should reduce overweight CHF exposure and widen stop-losses on franc longs, as intervention timing remains unpredictable but appears imminent based on Schlegel’s unusually explicit forward guidance.

Source: FXStreet