Credit Suisse Helps Swiss Franc

News that Credit Suisse posted better than expected earnings is supporting the June Swiss Franc this morning. Traders are hoping this event is a sign of better results from other Swiss banks such as UBS.

News that Credit Suisse posted better than expected earnings is supporting the June Swiss Franc this morning. Traders are hoping this event is a sign of better results from other Swiss banks such as UBS. Most of the rally is short-covering rather than new buying however.

Another reason for the rally is that the strong surge in the Euro has taken some of the pressure off of the Swiss National Bank to intervene in an effort to devalue the Swiss Franc. The SNB is trying to keep the Swiss Franc low in order to generate interest in Swiss exports and to prevent deflation.