📰 Fundamentals & Macro·advanced

SNB (Swiss National Bank)

Also called: swiss national bank

The central bank for Switzerland — known for unpredictable interventions to weaken the safe-haven Swiss franc.

The Swiss National Bank is Switzerland's central bank. It sets interest rates and manages the Swiss franc — one of the world's premier safe-haven currencies. The SNB is famous (and feared) for its willingness to intervene aggressively in the FX market to prevent the franc from getting too strong. The most famous SNB action was January 2015, when they suddenly removed the EUR/CHF floor of 1.20 and the franc rallied 30% in seconds. Thousands of retail accounts blew up. The lesson: never assume the SNB will warn you before they act. The SNB meets quarterly, less frequently than other major central banks. Decisions are announced at 08:30 GMT on Thursday. Because Switzerland is a small open economy with chronic deflation pressure, the SNB tends to lean dovish and uses unconventional tools (like negative rates and direct FX intervention) more aggressively than other G10 banks.

Real trade example

The Mar 2024 SNB rate cut from 1.75% to 1.50% was a surprise that no major analyst had predicted. EUR/CHF rallied 150 pips in the first hour after the announcement.

Related terms

FOMC

beginner

The US Federal Reserve's rate-setting committee — the most important meeting in global forex, held 8 times a year.

ECB (European Central Bank)

intermediate

The central bank for the eurozone — sets interest rates and monetary policy for all 20 EU countries that use the euro.

BoE (Bank of England)

intermediate

The central bank for the United Kingdom — sets interest rates and monetary policy that drive GBP currency pairs.

BoJ (Bank of Japan)

intermediate

The central bank for Japan — historically the most dovish major central bank, with rates near zero for decades.

Beige Book

advanced

A qualitative report on US economic conditions published by the Fed eight times a year, two weeks before each FOMC meeting.

Jobless Claims

intermediate

The weekly count of new applications for unemployment benefits — a real-time read on the US labor market.

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