EURCHF is moving in an Ascending channel and the market has rebounded from the higher low area of the channel.
The Swiss National Bank is all set to release their new interest rates very soon and economists are predicting that it would remain unchanged due to the recent aid to Credit Suisse. Here is all you need to know about it:
Credit Suisse Aid
Although authorities on both sides of the Atlantic moved to ease worries of a widening crisis, the Swiss National Bank announced on Wednesday that Credit Suisse is currently properly capitalized and that the central bank will provide further liquidity if necessary. Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks,” according to a statement released by the Swiss Financial Market Supervisory Authority and the Swiss National Bank (SNB). The statement also stated that the SNB will intervene if the current situation were to deteriorate. The authorities have also stated that the collapse of two regional banks in the United States in the previous week does not provide a “direct danger of contagion” to the banking system in Switzerland. The remark was made after the stock of Credit Suisse which is listed in Switzerland dropped by more than 20% on Wednesday.
USDCHF is moving in the Descending channel and the market has reached the lower low area of the channel.
The bank has delayed the release of its annual report in the past, and on Tuesday it said that it discovered “substantial weakness” in its financial reporting in previous years. In addition, the Saudi National Bank, which is Credit Suisse’s most important financial supporter, said that it would be unable to give more capital to the firm due to a problem with regulatory compliance. The chairman of the Saudi bank did state that his organization was pleased with Credit Suisse’s turnaround strategy and that the company seemed to be in a healthy financial position. The collapses of Silicon Valley Bank and Signature Bank over the course of the previous week, two of the greatest bank failures in the history of the United States, have brought about concerns over Credit Suisse.
On Sunday, banking authorities in the United States made public their intentions to back up the deposits held at the collapsed banks and to give more liquidity to the overall financial system. As a result of the fast increases in interest rates implemented by central banks throughout the world over the course of the past year in an effort to combat inflation, cracks are beginning to emerge in the global financial system. The notification was made by Swiss authorities a day before the next meeting of the European Central Bank’s monetary policy meeting. The Federal Open Markets Committee of the Federal Reserve System in the United States is scheduled to meet the following week.
Switzerland-Ukraine Weapons Deal
In an effort to put an end to an increasingly heated local discussion on the long-standing neutrality of Switzerland, the country’s president has stated that Swiss-manufactured weaponry would not be re-exported to Ukraine. This decision was made in an effort to draw a line under the controversy. In the past few months, diplomats from Germany, France, and the Netherlands have all been very active in their efforts to persuade Switzerland to let them ship stocks of Swiss-made weapons that are currently stored in the armories of their respective nations to Ukraine to assist in the country’s military operations.
GBPCHF is moving in the Descending triangle pattern and the market has reached the lower high area of the pattern.
According to the rules that are now in place, firearms that were manufactured in Switzerland cannot be resold or re-gifted without the consent of the government, nor can they be transported to areas that are currently engaged in hostilities. Since the level of pressure on Bern has increased, particularly in regard to the critical stockpiles of anti-aircraft shells used by Gepard flak guns, certain lawmakers in Switzerland have requested that their nation’s attitude be altered.
In the meantime, a survey that was conducted and released at the beginning of this month indicated that 55% of people living in Switzerland were in favor of the re-export of weaponry to assist Ukraine defend itself. He took aim at critical recent comments made by France’s ambassador to Bern about the country’s position on weapons exports.
CHFJPY is moving in an Ascending channel and the market has fallen from the higher high area of the channel.
The ambassador had stated that it would be “a problem for Europe” if the Alpine country continued to block the re-exporting of weapons and ammunition to Ukraine. He was referring to the position of the country on weapons exports. He took aim at those comments. In addition to this, he stated that the politicians of Germany were blaming Switzerland in order to deflect attention from their own dismal political record over the provision of deadly assistance to Ukraine.
Berset, a social democrat, is now serving as one of Switzerland’s seven federal councilors, which together make up the executive branch of the Swiss government. Every year, one of them takes the other’s place in the presidency. The fact that Berset is adamantly opposed to any kind of weapon distribution, as he has now openly acknowledged, makes it extremely improbable that the status quo will ever be altered. The rules that govern the federal council are decided by a unanimous vote, and it may be many months before parliament agrees to alter any of the laws. Even if it did, the matter would have to be put to a vote at the national level, which is a procedure that may take up to a year to organize.
Crypto Nation
With the failure of two lenders that were favorable to digital currency enterprises, companies dealing in cryptocurrencies are rushing to find new financial partners as quickly as possible. Some of these businesses have made their way to crypto-friendly banks in Switzerland and have inundated those institutions with demands for banking services.
AUDCHF is moving in the Descending triangle pattern and the market has reached the lower high area of the pattern.
The cryptocurrency business, in general, has had a tough time gaining access to banking services from traditional lenders. This is because traditional bankers do not want to deal with anything that does not have a distinct regulatory framework. This has affected blockchain and cryptocurrency companies, who have been forced to work with specialized banks instead. But now that two of the largest lenders are out of the picture, bitcoin businesses have resorted to Switzerland. Switzerland has been trying to advertise itself as a crypto center with robust regulation, and this has attracted cryptocurrency firms there.
The queries have been pouring in despite the turbulence that has been occurring in the Swiss banking industry since Credit Suisse was ultimately bought by UBS in a deal that was mediated by the Swiss regulators in an effort to prevent the contagion from spreading to other lenders. Even though Switzerland’s image has been damaged as a result of the incident, cryptocurrency firms have not been deterred. The adviser stated that the problem is still present in terms of crypto companies still needing banking services. He added that individuals are viewing the event with Credit Suisse as an unpleasant singular danger associated with a particular bank.
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