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FOREX-Swiss franc hits 1-week high vs euro as SNB keeps rates on hold

* SNB keeps prices unchanged, pushes Swiss franc higher

* Australian dollar jumps on bullish jobs data surprise

* Kiwi dollar rises right after RBNZ says price reduce may be last

By Anirban Nag

LONDON, Dec ten The Swiss franc rose against the euro on Thursday soon after Switzerland’s central bank kept interest rates on hold at record lows, defying some expectations that it may well act to weaken an overvalued currency.

The Swiss National Bank kept its target range for three-month Libor at between -1.25 and -.25 percent as expected, but it stated it would stay active in the currency market place if necessary.

The euro fell to 1.08 francs, its lowest in a week, from around 1.0830 francs ahead of the policy announcement.

Ahead of the European Central Bank met last week, most economists polled by Reuters had forecast the SNB would leave prices unchanged. But a third of them, wary that much more easing by the ECB would enhance the franc, anticipated the SNB to reduce rates.

The ECB loosened policy in measures that nevertheless fell properly short of marketplace expectations, pushing the euro broadly larger and taking pressure off the SNB to act and weaken the franc.

“The SNB had the chance to ease policy like the ECB and keep interest rate differentials and discourage inflows. But they chose not to. So we are seeing the euro weaken against the franc,” mentioned Chris Turner, head of currency method at ING.

“Over a period of time we anticipate the euro to ease to 1.05 francs, but there is a lot of difficult perform and you in no way know where the SNB will come and intervene.”

The SNB stressed its willingness to intervene to weaken what it calls a “substantially overvalued” franc.

Currency reserves have ballooned to almost 563 billion francs, a record higher. Credit Suisse economists in November estimated the SNB was purchasing foreign currency worth around 400-500 million Swiss francs ($ 900 million) per week.

The euro pulled back from a one particular-month high against the dollar to trade .five % reduced at $ 1.0975. The frequent currency scaled a 1-month peak of $ 1.1044 on Wednesday, extending last week’s short-covering rally right after the ECB fell short of delivering the aggressive easing many had anticipated.

Meanwhile, the Australian dollar reached a high of $ .7333 , pulling away from the earlier day’s two-week low of $ .7169. It last stood at $ .7295, up .9 percent, helped by a robust jobs report.

Yet another notable mover was the New Zealand currency, which rallied after the Reserve Bank of New Zealand cut interest rates but mentioned further easing ought to not be needed.

The kiwi dollar climbed to a higher of $ .6782, much more than two complete U.S. cents above the earlier day’s low of $ .6562. It was last up .three % at $ .6737.

“The kiwi need to not appreciate any further as the RBNZ will otherwise take action once more,” mentioned Antje Praefcke, currency strategist at Commerzbank. “I would not oppose the RBNZ there and in my view levels above $ .68 are clearly promoting levels.” (Editing by Hugh Lawson)

Nationwide keeps delaying our mortgage application

Why is our mortgage nonetheless in the pendiong tray with Nationwide? Photograph: Alamy

We are 1st-time purchasers and decided to get our mortgage via Nationwide possessing been told by a colleague that it was rapid, and wonderful with initial-time buyers and self-employed folks, as my partner is. On its site it gives a timescale for application to offer. We applied much more than a month ago.

Initially its communication seemed excellent, with text messages and emails updating us. Even so, we are now being asked for additional details in a piecemeal fashion. Every time we give the necessary details Nationwide tells us it will be another week ahead of it is reviewed.

The vendor of the property we are getting is threatening to cancel the sale as we had agreed a swift turnaround time at the begin. We are stuck on what to do here. Must we take our possibilities and stick with Nationwide or attempt with one more provider? TB and RB, Milton Keynes

Nationwide tells us: “The proof of employment originally presented did not match that incorporated in the mortgage application, and further evidence was required to full the application. When this was completed, the mortgage supply was issued.”

This demand for additional details sounds fairly affordable to us, even if Nationwide didn’t communicate this correctly to you. Your property buy is back on track and you have apparently considering that confirmed to Nationwide that you do not wish to raise a formal complaint.

We welcome letters but cannot answer individually. E-mail us at customer.champions@theguardian.com or create to Customer Champions, Money, The Guardian, 90 York Way, London N1 9GU. Please consist of a daytime telephone quantity