At this point, economists and financial experts are focused on the SNB's plans to purchase foreign currencies as well as the forthcoming referendum regarding the share of gold in the central bank's gold-and-currency reserves.
In particular, it is reported that the SNB ma continue purchasing foreign currencies in any volume required, Market Leader reports. With that said, the Swiss National Bank seems to be determined to take any necessary steps if there is an urgent need for that according to the current economic situation in the country and worldwide.
At the same time, the SNB reports that it is not determined to sell gold stored in its reserves. On the contrary the task is to expand those gold reserves. As for the forthcoming referendum on gold purchases, the representatives of the central bank assume that this is an excessive step. On top of that, they assume that once the referendum results torn out to be successful, this will restrict the SNB's ability to conduct monetary policies. The thing is that the referendum is not going to reach the set goals since the degree of success in SNB's measures is determined by the quality of monetary and fiscal policies rather than the share of gold in the local reserves, Masterforex-V Academy reports.
With that said, the ban on selling gold, which may came out as the result of the referendum, may turn into a major problem since such restrictions limit the SNB's arsenal of weapons that can be used during economic difficulties. These restrictions deprive the gold reserve of tis status and major function, which further translates into financial security issues. By the way, gold and currency reserves are created exactly to resolve such issues.
USDCHF Outlook
Meanwhile, the Swiss Franc is still going down in value against the US Dollar, which means that USDCHF is still rallying within the scope of a long-term uptrend, Masterforex-V Academy reports. At this point, the currency pair remains bullish within the framework of wave 3/c of level Weekly2. A couple of days ago, the currency pair completed wave b(C) of Daily. A break above 0.9741 will elongate the wave, thereby resuming the rally. With that said, the key levels of resistance are 0.9751 and 0.9838. A break below 0.9441 and the bottom of the ascending MF sloping channel will complete the current bullish move.
