Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United States
  4. OTC Markets
  5. Sophiris Bio, Inc.
  6. News
  7. Summary
    SPHS   CA83578Q2099

SOPHIRIS BIO, INC.

(SPHS)
SummaryQuotesChartsNewsCompany 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Swiss franc rises to six year high as central bank stands back

11/30/2021 | 04:12am EST
FILE PHOTO: A sign is pictured on the Swiss National Bank (SNB) in Bern

(Repeats Monday story with no change to text)

* Small rise in sight deposits indicates SNB not intervening

* Franc rises to highest level since July 2015

* Economists reckon 1.03 could be the new defense line

ZURICH, Nov 29 (Reuters) - The Swiss National Bank is no longer standing in the way of the franc's appreciation, according to data published on Monday, in an eye-catching change in view of the safe-haven currency's rise to its highest against the euro in more than six years.

The central bank's apparent stance will confound investors who have grown used to the SNB's mantra that it would fight tooth and nail with negative interest rates and foreign currency purchases to restrain the Swissie.

On Monday, the franc rose to 1.0426 against the euro - its highest level since July 2015 - fueled by the emergence of a new COVID-19 variant, low Swiss inflation and the weakness of the euro.

The level is not far off the 1:1 against the euro the franc briefly reached after the SNB's last policy shift in Jan. 2015.

But the latest sight deposit data - a proxy for the SNB's interventions - increased by only 94 million francs last week, a fraction of the forex purchases seen last year.

One factor for the small increase could be the withdrawal by bank customers of cash, economists say, which happens every year in the lead up to Christmas and reduces the amount of cash the banks hold on sight with the SNB.

"Still, an increase of less than 100 million francs shows the SNB chose not to defend the 1.05 level," said J.Safra Sarasin economist Karsten Junius.

The development could mean the SNB has given up restraining the franc at its current level, because of benign Swiss inflation and the country's robust economy.

Instead, the central bank may be storing up its firepower to prevent rapid and large-scale appreciation instead, economists say.

The SNB declined to comment about Monday's data and the economists' reaction to it.

"If the franc stays at this level of around 1.05, a little bit above, a little bit below, the SNB won't do a lot," said Thomas Stucki, the chief investment officer at St Galler Kantonalbank and the former manager of the SNB's foreign currency reserves.

PARITY SEEN 'IN NEXT 2-3 YEARS'

"They will prevent the movement below 1.04 to 1.03" he added. "Then they will step up interventions."

The franc was on course to eventually reach parity, Stucki added.

"It's clear from the development of inflation in Europe and Switzerland the franc will become more expensive over time," he said. "We don't expect parity to be reached next year, but we think it will happen in the next two to three years."

Over the weekend, governing board member Andrea Maechler said the SNB was monitoring the franc's level, although the central bank didn't target a specific rate, she said.

Swiss inflation at 1.2% is well within the SNB's definition of price stability and reduces the need to act.

"The long-term policy of the SNB remains in place: fight a strong overvaluation of the Swiss franc. The question is, however, what a strong overvaluation means," said UBS economist Alessandro Bee.

Due to the much stronger inflation in the Eurozone than in Switzerland, the fair value of the franc has climbed to 1.11 to the euro from 1.20 last year, he said.

"From this perspective at 1.05 the franc is not strongly over-valued anymore," said Bee. "This warrants a lower intervention threshold for the SNB, even at this point it is unclear where this new threshold exactly is."

The stance of the SNB will be tested in the coming days, particularly if the omicron variant of coronavirus increases demand for the franc.

"Now the situation is getting more complicated for the SNB," said ING economist Charlotte de Montpellier. "There is a risk of a renewed flight to safety and a strengthening of the currencies considered as safe havens, and therefore of the Swiss franc."

Until now, the SNB has done the right thing not wasting too much money defending the franc, said J Safra Sarasin economist Junius.

"I do think they will try to halt any appreciation at 1.03. That would be last line of defense before parity," he said.

(Reporting by John Revill, Editing by William Maclean)


ę Reuters 2021
All news about SOPHIRIS BIO, INC.
2021Swiss franc rises to six year high as central bank stands back
RE
2021SOPHIRIS BIO : Swiss c.bank diverges from peers to stick with ultra-loose monetary course
RE
2017SOPHIRIS BIO : Reports Fourth Quarter and Full Year 2016 Financial Results and Key Corpora..
PU
2016SOPHIRIS BIO : Reports Second Quarter 2016 Financial Results and Key Business Highlights
PU
2016SOPHIRIS BIO : Reports First Quarter 2016 Financial Results and Key Business Highlights
PU
2016SOPHIRIS BIO : To Present Topsalysin Phase 3 Data from Positive PLUS-1 Study as a Late Bre..
PU
2015SOPHIRIS BIO : Phase 3 BPH Study Successfully Meets Primary Endpoint
PU
2015SOPHIRIS BIO : Reports Third Quarter Financial Results and Business Highlights
PU
2015SOPHIRIS BIO : Reports Second Quarter Financial Results
BU
2015SOPHIRIS BIO : to Present at the LD Micro Invitational Conference
BU
More news
Chart SOPHIRIS BIO, INC.
Duration : Period :
Sophiris Bio, Inc. Technical Analysis Chart | SPHS | CA83578Q2099 | MarketScreener
Managers and Directors
Randall E. Woods President & Chief Executive Officer
Peter T. Slover Chief Financial & Accounting Officer
Lars G. Ekman Executive Chairman
Gerald T. Proehl Independent Director
Sector and Competitors
1st jan.Capi. (M$)
SOPHIRIS BIO, INC.0.00%0
MODERNA, INC.-36.98%64 900
LONZA GROUP AG-15.65%52 307
IQVIA HOLDINGS INC.-14.60%46 031
SEAGEN INC.-17.50%23 323
ICON PUBLIC LIMITED COMPANY-18.65%20 508