Forex: SNB intervenes to stem pressure on the franc

The Swiss National Bank (SNB) intervened in the foreign exchange market after the "yes" of Britons to Brexit, the exit of Britain from the EU. This was confirmed by the SNB in a statement today. The National Bank has announced that continues to remain active on the market.

The result of the referendum in the UK has resulted in growing pressure on the franc, the SNB noted. The euro rose to start the day below the threshold of 1.07 francs to 1.0624 francs, its lowest level since August 2015. The Swiss currency is seen as a traditional value of refuge in case of major political crisis.

Credit Suisse has predicted today interventionist pressure on the SNB. A new lowering of rates is not excluded. A high volatility is taking over the market, UBS says which expects coordinated action of European central banks to limit the damage.