Switzerland Foreign Exchange Reserves

Info

History

Chart

Impact:

Low

Source: Swiss National Bank

Next Release:

Date:

Period: Jun

What Does It Measure?

Switzerland's Foreign Exchange Reserves measure the country’s holdings of foreign currencies and gold, assessing its ability to manage its currency and stabilize its economy in times of financial instability. The primary focus is on assessing monetary policy efficacy and international liquidity, with key indicators including total reserve assets, composition of reserves, and changes in valuation.

Frequency

This report is typically released monthly, published shortly after the end of each month, and it provides final figures rather than preliminary estimates.

Why Do Traders Care?

Traders monitor Switzerland's Foreign Exchange Reserves as they reflect the central bank's capacity to influence the Swiss franc's value in the forex market, affecting currencies and commodities. Higher reserves can be seen as a positive signal for the Swiss economy, contributing to a bullish outlook for the CHF while influencing Swiss stocks positively, particularly in export-oriented companies.

What Is It Derived From?

The Foreign Exchange Reserves are derived from the Swiss National Bank's (SNB) management of its currency reserves, calculated through data collection on all assets held in foreign currencies, including deposits, securities, and gold inventories. The methodology involves assessing both the volume and market value of these assets, utilizing industry standards for valuation.

Description

In this context, the foreign exchange reserves are relevant as a leading economic measure, indicating the potential for intervention in monetary policy. The reserves provide insights into the country’s economic health and stability, allowing for predictions regarding future currency movements and trade balances.

Additional Notes

Changes in the level of foreign exchange reserves can also provide insights into Switzerland's trade balance and capital flows, reinforcing its position in the global economy. This indicator is closely watched alongside other economic reports, such as trade balances and inflation rates, to paint a comprehensive picture of economic conditions.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for CHF, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise