Latest SNB Intervention Half Life - One Hour 15 Minutes

Tyler Durden's picture

As expected, after the USDCHF and EURCHF has been reaching new all time lows again and again, day after day, the SNB, a week after its latest doomed intervention, intervened again, by doing more of the same, this time increasing banks’ sight deposits at the SNB from currently CHF 80 billion to CHF 120 billion. End result: a 150 pip spike... which was fully retraced in one hour. The trend is unmissable - every single intervention (that of the Fed included) has progressively little impact as these desperate measures, traditionally reserved for life or death situations, and which are supposed to bring the element of surprise with them, are now not only not surprising, but demanded every single day, and if absent, cause asset sell offs. Pretty soon the battlefield will be central planners vs HFTs, with the money printers issuing money at first on a monthly, then weekly, daily, hourly, then lastly millisecond-ly, and ultimately constant basis, at which point it will truly be too late to buy gold.

USDCHF post overnight intervention:

And full text of the latest SNB "intervention":

Swiss National Bank expands measures against strong Swiss franc

 

The substantial rise in risk aversion on the international financial markets has further intensified the overvaluation of the Swiss franc in the last few days. In the light of these developments, the Swiss National Bank (SNB) is taking additional measures against the strength of the Swiss franc. It will again significantly increase the supply of liquidity to the Swiss franc money market. The SNB aims to rapidly expand banks’ sight deposits at the SNB from currently CHF 80 billion to CHF 120 billion.

 

To accelerate the increase in Swiss franc liquidity, the SNB will additionally conduct foreign exchange swap transactions. The foreign exchange swap is a monetary policy instrument which the SNB uses to create Swiss franc liquidity. It was last employed in autumn 2008.

 

The massive overvaluation of the Swiss franc poses a threat to the development of the economy in Switzerland and has further increased the downside risks to price stability. The SNB is keeping a close watch on developments on the foreign exchange market and on financial markets. If necessary, it will take further measures against the strength of the Swiss franc.