The Swiss National Bank is putting the kibosh on the franc's safe haven status, and investors are turning to Norway instead. But it could be too much too fast.
The Swiss National Bank (SNB) came out fighting Tuesday, announcing its intention to set a minimum exchange rate for the Swiss franc against the euro, in a move which sent European shares and the price of gold up.
"For the Swiss franc to look like an attractive funding currency again when it is in competition with so many other currencies at the moment we would need to see....direct intervention on the part of the Swiss National Bank," Adam Cole, head of currency strategy, RBC. He added that he did not expect much in the way of dovish comments from Fed chairman Ben Bernanke when he speaks on Friday.