(MENAFN - Daily Forex) According to one governing board member of the Swiss National Bank, the recent weakening by the Swiss Franc against the common currency Euro is good news. However, Andrea Maechler believes that that trend is 'fragile, however the outlook as to whether or not that is sustainable remains in question. A recent uptick in inflation was well received, though Switzerland's inflation outlook remains murky. In recent weeks, with the Eurozone economy showing improvement and with some clarity from political uncertainty, the Swiss Franc has resultantly lost some ground against its neighbor.
At 11:29 am (BST) in London, the EUR/CHF was trading at 1.1453 Swiss Francs, a gain of 0.07%; the pair has ranged in today's session from a trough of 1.14318 Swiss Francs to a peak of 1.14725 Swiss Francs.
SNB Ready to Intervene When Neede
Maechler believes that the SNB's expansionary monetary policy via negative interest rates will likely be maintained for some time, though the SNB remains ready to intervene in FX markets if the need arises. She believes that the SNB must be able to re-establish traditional rate differential, at least in part, relative to other countries.