Last Thursday, SNB’s Jordan said in Basel that the goal of the Central Bank’s policy remains to reduce pressure on the Swiss Franc and make Franc investments less attractive. He explained that the Swiss National Bank is not keeping the Franc artificially low to give exporters an edge. He added: “Our monetary policy, with the negative interest rate and our willingness to intervene in the foreign exchange market as necessary, is not designed to give Switzerland an unfair advantage in international trade.”
Meanwhile, the British Pound edged down from a six-week high $1.3337, with traders largely brushing off cuts to Britain’s economic growth forecasts announced in the previous day’s budget statement and refocusing on Brexit negotiations. PM Theresa May was visiting Brussels, where European Union negotiators hope she wiould run the risk of a domestic backlash by raising Britain’s divorce bill offer to secure a deal in December 2017. Local media reports over the past week suggest that May has secured backing from pro-Brexit hardliners in her cabinet to increase the offer, which has given the Pound a modest lift in recent days
Last Friday, Gold prices inched up as the Dollar remained under pressure after minutes of the US Fed’s meeting revealed that some policymakers were concerned inflation would stay below the bank’s 2% target for longer than expected. However, many Fed officials expect interest rates to be raised in the “near term”. Higher interest rates tend to boost the Dollar and push Bond Yields up, putting pressure on Gold prices by increasing the opportunity cost of holding Non-Yielding Bullion.