The Swiss National Bank’s President, Thomas Jordan, said this morning that “there was an increased demand for francs” and that the Euro was experiencing “selling pressure.”
The Swiss Franc is a traditional “storage of value” in times of crisis and is experiencing rapid appreciation pressures, to which the Swiss authorities are responding with massive selling of currency and negative interest rates. This morning the Franc surged 16% against the euro, the highest since the SNB abandoned its exchange-rate cap of 1.20 in January.
The rise of the Swiss Franc is threatening the country with recession.
Another traditional storage of value, gold, is also making considerable gains against all major currencies. The price of gold rose by nearly 1,1%, but the U.S. dollar is also appreciating holding back an aggressive spike in global prices. Gold Future’s yields also spiked in volume by as much as 63% according to Bloomberg show. There was a similar trend in silver, which had been dropping by 4,9% this year and is now rebounding to 0,9% losses since the beginning of this year.
