Jordan May Take the SNB Presidency

By TraderVox.com

Tradervox (Dublin) – Policy makers may choose the current Swiss National Bank Interim Chairman Thomas Jordan as the new SNB president after discussions that are supposed to be held today. According to some sources in the country, the Swiss Government may appoint him as soon as today. Thomas Jordan has got backing from the Swiss President Eveline Widmer who said that he is a leading candidate for the post in a statement last month. Jordan has also received some positive accolade from other government officials who are happy with his work so far as well as his qualification for the job.

In a statement last week, Thomas Jordan had indicated that the SNB is willing to do whatever it takes to keep the 1.20 francs per euro cap imposed on September 6 as a measure to keep the franc considerably weak against the 17 nation currency. He said that the bank would make unlimited foreign currency purchases to ensure that this happens. His ardent support for the SBN policy and his willingness to act may be some factors that will be considered when he is chosen for the post.

However, for the first time in seven months, traders have started to test the Swiss National Bank willingness to keep the cap as the cap was broken on April 5 and 9 forcing the Interim Chairman to announce and reiterate the bank’s commitment to maintain the cap. Traders are going for the franc as situation in Europe worsens and the demand for Swiss assets grows. The growing Spain borrowing cost has prompted traders to shift their attention to the debt crisis which led to the strengthening of the franc.

The move by the Swiss government may also be steps it is taking to assure traders that it is willing to keep the cap and do what it takes to maintain the cap. The current interim chairman’s position on the cap will give the market some confidence that the cap will be maintained.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox