SNB's Jordan: Franc cap to remain in place

Swiss National Bank chairman Thomas Jordan reaffirmed today that the EUR/CHF peg would remain the central bank's firm policy and that the franc would continue weakening. He added that he did not see immediate inflation woes.

Referring to the G7 statement on the "currency war," released earlier today, Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, said: "You could argue the clear FX manipulators out there are the Swiss with the SNB’s Jordan saying today that the swiss franc’s 1.20 cap against the euro is still in place, the franc will weaken further and they stand ready to take further measures. We are short both the yen and the swiss, two currencies that pay the lowest interest rates in the world and both with central banks aiming explicitly or implicitly to devalue."