The Swiss National Bank President has coined the referendum “Save our Swiss Gold” a dangerous initiative, and accepting the measure would restrict room for manoeuvre on currency reserves, which will be detrimental to the Swiss economy.
It turned out to be a overwhelming “No” vote, as SNB policy makers estimated they would have needed to buy 70 billion francs worth of gold if the referendum had passed. The minimum exchange rate for the EUR/CHF will also be affected due to the weakening of the Euro, and Swiss Franc’s demand fell subsequently as the plan for purchases were ditched. EUR/CHF did not have to withstand drops to 1.2000 at time of writing, continuing its rebound to 1.2037 at time of writing.
China’s slowdown in manufacturing and a more than expected unemployment claims this week from the U.S may give way for further downside for the Yellow metal which has fallen 60 dollars per ounce from November.
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