To intervene or not to intervene?
That is the question for the SNB as the franc continues to gather further strength on the year. EUR/CHF has worked its way back towards the 1.10 handle now and is going to draw a lot of chatter about the Swiss central bank in the coming weeks/months.
With the global economy stuttering amid rising trade tensions, other major central banks are about to introduce more easing monetary policy while also keeping their own currencies in-check as they try to boost inflationary pressures.
The SNB would very much like to do the same but with the franc still somewhat seen as a haven asset for investors (despite such negative rates), it isn't helping the central bank's case in a race to the bottom, as the FT puts it here.
And should they try to intervene in markets, guess who is just ready and waiting in the wings to fire a shot on Twitter? Good ol' Donald Trump.
That puts the SNB in a bit of a pickle as they could risk the wrath of the Trump administration if they are obviously seen making attempts to weaken their own currency.
