The divergence between gold prices and the Swiss franc/euro cross rate in the hours after the start of the invasion of Ukraine suggests to us that the SNB intervened to limit the sharp rise in the currency. But while the Bank might feel the need to push back against any further sharp spikes in the FX market, the broader level of the franc won’t be causing policymakers sleepless nights. Next week, GDP data from Switzerland and Sweden will show that output was about 2.0% and 3.5% above its pre-virus levels respectively in Q4 2021. Meanwhile, data released on Thursday are likely to show that Swiss inflation rose to a 160-month high in February, albeit only to +1.8%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services