Houston, we have liftoff (again)…
The chart above details what you need to know about possible SNB intervention over the past few weeks. It is getting quite clear that the central bank is back in the market to smooth out the appreciation seen in the franc once again.
Total sight deposits have been relatively stable since mid-2017 but the last few weeks have seen things start to pick up again. However, despite the Swiss central bank coming back into the picture, it’s tough for them to fight against the current global backdrop.
As such, this may just be about what the best that they can do, that is to smooth out the franc’s appreciation and not counteract it.