Swiss National Bank Faces Test as Athens Bleeds Euros (EUR/CHF)
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Pressure is mounting on the Swiss National Bank as it defends the CHF1.20 floor vs. the Euro. The value of the Euro is heading lower against most currencies, as Greeks banks see massive outflows of capital.
Since Monday, reports of bank runs in Greece have been all over the headlines. The central bank in Greece said at least $894 million was pulled out of banks on Monday as depositors fear Greece will be out of the Eurozone by the end of the week. A similar amount was said to be pulled out on Tuesday.
The outflows pushed the SNB to give a vow to defend the CHF1.20 per euro level with all possible consequences.
ING analysts think the SNB is going to face a “serious test” as the situation in Greece escalates. With the issues in Athens going from bad to worse Wednesday, it appears the test is at hand.
The value of the EUR/CHF is at 1.2010 in after-hours trading on Wednesday.
Since Monday, reports of bank runs in Greece have been all over the headlines. The central bank in Greece said at least $894 million was pulled out of banks on Monday as depositors fear Greece will be out of the Eurozone by the end of the week. A similar amount was said to be pulled out on Tuesday.
The outflows pushed the SNB to give a vow to defend the CHF1.20 per euro level with all possible consequences.
ING analysts think the SNB is going to face a “serious test” as the situation in Greece escalates. With the issues in Athens going from bad to worse Wednesday, it appears the test is at hand.
The value of the EUR/CHF is at 1.2010 in after-hours trading on Wednesday.
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