Swiss National Bank

The Swiss National Bank (SNB) is the central bank of Switzerland, and it has the responsibility to formulate the country’s monetary policy as well as administer Swiss franc banknotes. Switzerland’s prestigious status as a global financial safe haven centre means that the SNB is one of the most important central banks in the world. The SNB has a constitutional mandate to work in the best interest of the country.

It does this by ensuring price stability as well as by creating the appropriate monetary environment to support and sustain economic growth. The SNB is also the official banker of the Swiss Confederation and also manages the country’s forex and gold reserves. Unlike many other central banks, the SNB has issued shares to the public, and it is estimated that private investors cumulatively own about 18% of the bank.

Policy Snapshot

As of Q4 2025: The Swiss National Bank’s policy rate is 0.00% (held). The next Monetary Policy Assessment is scheduled for 09:30 CET in December, followed by a statement and press conference.
Why it matters: CHF front-end rates (SARON/OIS) and short-dated yields anchor near the policy rate, so even small surprises can swing USD/CHF, EUR/CHF, and CHF crosses via repricing of the path ahead.

Trader takeaway: If the SNB’s guidance shifts the conditional inflation forecast or the FX stance, expect immediate moves in SARON futures and CHF pairs as markets reprice the rate path and intervention risk.

Intraday Market Map

• USD/CHF & EUR/CHF: Snap to the surprise in the path, not just the print. A hawkish repricing usually boosts CHF (USD/CHF lower, EUR/CHF lower); a dovish tone does the opposite.
• CHF crosses: AUD/CHF, CAD/CHF, GBP/CHF react in proportion to carry and risk sentiment (pro-risk crosses get hit harder on hawkish surprises).
• SARON futures / OIS: First two contracts re-price most; a parallel shift across the short end signals a durable stance change.
• Swiss short-dated yields: Track the policy path shift; watch the belly for persistence.
• Swiss equities: Banks/defensives can diverge; CHF strength is a headwind for exporters.

What to Watch Next

• Next SNB assessment: 09:30 CET (quarterly cadence).
• Key data prints: Swiss CPI; KOF/PMIs for growth momentum.
• Market-implied clue: Front SARON/OIS next-meeting pricing (how many bps are priced).

Set price alerts in the AvaTrade App for USD/CHF and EUR/CHF ahead of the decision, and add event reminders via our Economic Calendar.

Beginner Glossary

• SARON / OIS: Overnight rates used to infer the path of policy.
• Conditional inflation forecast: SNB’s projection given its policy path and assumptions.
• FX intervention: Operations that can lean against excessive CHF moves.
• Tiering/sight deposits: A framework that affects how banks are remunerated on reserves.

SNB Governance

The SNB has 2 head offices in Berne and Zurich. There are 6 representative branches in some cities as well as 14 agencies operated by cantonal banks around the country. The operations of the SNB are overseen by a Bank Council that consists of 11 members; 6 appointed by the Federal Council (including the President and Vice President) and 5 appointed by shareholders. The bank has 3 departments with distinct responsibilities that help it to deliver on its mandate:

1. Department I covers Economic Affairs, International Affairs, Legal Services, Communications and Statistics.
2. Department II covers Finance, Risk Management, Financial Stability, Cash and Security.
3. Department III covers Money Market and Foreign Exchange, Asset Management, Banking Operations and Information Technology.

Roles and Functions of the SNB

• Price Stability.The SNB has sought to keep inflation below 2% and uses medium-term inflation forecasts to guide its monetary policy decisions.
• Note Issuance. The SNB produces and distributes Swiss banknotes that serve as legal tender both locally and internationally. The SNB is also tasked with coin distribution.
• Implementation of Monetary Policy. The Swiss National Bank implements its monetary policy by setting interest rates as well as by actively participating in the forex market to keep the Swiss franc rate closer to its monetary environment targets.
• Asset Management. The SNB manages Switzerland’s gold and forex reserves.
• Cashless Payments. The SNB facilitates the settlement of cashless transactions through the Swiss Interbank Clearing (SIC).
• Financial System Stability. The Swiss National Bank is mandated to ensure a stable financial system by creating a regulatory framework, and relevant financial infrastructure that will help identify and fix risks is the system.
• International Markets Operation. The SNB is Switzerland’s representative in global institutions such as the IMF and G20.
• Banker of the Confederation. The SNB is the bank of the Swiss Confederation, and it handles the issuance and custody of securities as well as forex transactions.

How SNB Policy Transmits to Markets (The Trader’s Map)

The core idea: CHF doesn’t just react to the decision; it reacts to the path and conviction implied by the SNB’s statement, forecasts, and Q&A. The market translates that into SARON/OIS repricing first, then FX and local assets.

Transmission Channels

1. Rates channel (front end → curve):
   • The policy rate and guidance shift SARON/OIS at the very front end (next meeting, 3–12 months).
   • If guidance implies a series of moves (or a longer hold), the 2–3y sector adjusts, telling you how durable the stance might be.
2. FX channel (relative rates + intervention risk):
   • CHF moves with rate differentials vs EUR and USD (e.g., SNB hawkish vs ECB/Fed steady → CHF firmer).
   • Wording on “monetary conditions” and FX can add or subtract intervention risk premium, accelerating CHF moves.
3. Inflation & growth channel (real rates):
   • A higher real policy rate (policy rate minus inflation trend) supports CHF and tightens conditions for equities.
   • A softer inflation path with dovish guidance can ease CHF and support risk assets.
4. Portfolio & safe-haven channel:
   • In global stress, CHF gains even without a policy change as capital seeks safety.
   • The SNB’s tone about external risks can amplify or dampen that behaviour.

What to Read, in What Order

1. Headline decision: change/hold and one-line stance.
2. Conditional inflation forecast: near-term vs medium-term track (is the path consistent with future hikes/cuts or a longer hold?).
3. FX language: any nods to “franc strength” or “monetary conditions”; explicit mention of operations matters.
4. Press Q&A: clarifications on imported inflation, wage dynamics, and housing/credit — all feed the path.

Trader shortcut: If front SARON contracts reprice by ~5–10 bps in the first minute and the 2–3y OIS follows in the same direction, prioritise the move as “sticky” rather than just knee-jerk.

Diagnosing the Move (decision tree)

• Front end jumps, belly follows, FX strengthens: Path upgrade → CHF bid (USD/CHF ↓, EUR/CHF ↓).
• Front end fades, belly unmoved, FX snaps back: One-off surprise without guidance → fade the initial spike.
• Dovish guidance, CPI risk flagged lower, equities bounce: Path downgrade → CHF offered (USD/CHF ↑, EUR/CHF ↑).
• No rate change but stronger FX language (intervention hint): Markets pre-empt CHF strength even on hold.

How it Shows Up in Instruments

• USD/CHF & EUR/CHF: Purest expression of relative policy and intervention risk.
• CHF crosses (AUD/CHF, CAD/CHF, GBP/CHF): Add a risk-sentiment overlay; high-beta crosses exaggerate hawkish shocks.
• SARON futures / OIS: First to move; watch the shape (parallel vs twist) to judge persistence.
• Swiss equities: Exporters dislike a stronger CHF; financials can benefit from steeper curves but suffer if growth is marked down.
• Swiss govvies (front vs belly): A hawkish repricing steepens the very front; a regime shift lifts the belly.

Practical Heuristics

• “Path > Print”: An unchanged rate with a hawkish path can move CHF more than a token hike with dovish hints.
• “Words matter”: One sentence on the franc can be worth 25–50 bps of OIS in minutes; treat FX language as a variable, not noise.
• “Cross-checks”: Don’t trust FX alone—confirm with front SARON and 2–3y OIS
• “Mind the ECB/Fed”: If the SNB is hawkish while the ECB/Fed are steady, EUR/CHF can move faster than USD/CHF.

Common Traps (and how to avoid them)

• Chasing the first tick: Liquidity is thin in the first 30–90 seconds. Use OCO with a smaller size and let the price come to you.
• Ignoring the Q&A: A neutral statement can turn hawkish (or vice versa) in minutes; keep risk budget for the press session.
• Over-relying on one pair: Split exposure across USD/CHF and EUR/CHF to reduce single-driver risk (USD leg vs EUR leg).
• Forgetting global risk: On broad risk-off, CHF can rally despite a dovish SNB — hedge with position size, not conviction.

Case Studies

Drawing the Line: Introduction of the EUR/CHF 1.20 Floor (September 2011)

What happened:

At the height of Euro-area stress and safe-haven flows into CHF, the SNB imposed a minimum exchange rate of 1.20 in EUR/CHF, pledging to enforce it “with the utmost determination.”

EUR/CHF jumped sharply on the announcement (roughly high-single-digit percentage move), and volatility stayed elevated as markets tested the resolve.

Why it moved

• Credible commitment altered forward expectations.
• Path repricing: front-end OIS and FX intervention risk premium both reset.
• Short squeeze: CHF longs were forced to cover rapidly.

Trader lessons

• When the SNB defines a line, the first test is often violent; plan entries with pullbacks rather than chasing the initial spike.
• Split exposure between USD/CHF and EUR/CHF to hedge the USD or EUR leg idiosyncrasies.
• If trading against the SNB’s stated line, keep risk tiny and time-bound.

The Floor Is Gone: Removal of the EUR/CHF 1.20 Cap (January 2015)

What happened:

After years of defending a 1.20 floor in EUR/CHF, the SNB abruptly discontinued the cap.

Liquidity thinned instantly; EUR/CHF collapsed well over 20% within minutes, with prints reported below 0.90 on some venues before stabilising closer to parity intraday.

USD/CHF also whipsawed as CHF strength exploded across the board.

Why it moved so hard

• Regime shift: policy reaction function changed in one line.
• Positioning vacuum: crowded longs above the cap had to exit through a keyhole.
• Liquidity shock: spreads widened dramatically; many orders slipped or didn’t fill.

Trader lessons

• Size for regime risk around FX-sensitive language; what looks “pinned” can unpin.
• Use OCO and expect wider buffers; don’t stack multiple correlated CHF pairs at full size.
• Consider AvaProtect on the first attempt only when regime uncertainty is elevated.

Surprise Normalisation: First Hike After the Negative-Rates Era (June 2022)

What happened:

Markets expected an extended hold; the SNB surprised with a 50 bps hike, kick-starting a normalisation cycle.

CHF rallied quickly against both USD and EUR in the hours that followed; front SARON/OIS repriced multiple meetings in the same direction.

Why it moved

• Surprise on the path, not just the print.
• Inflation forecast tweaks implied tolerance for a stronger CHF to tame imported inflation.
• Relative stance vs ECB/Fed magnified the EUR/CHF’s move.

Trader lessons

• Anchor on “Path > Print”: the repricing of the next few meetings drives the impulse.
• Confirm FX with front SARON and 2–3y OIS — if they travel together, favour continuation.
• Keep risk for press Q&A; guidance colour can extend or reverse the first leg.

How to use these examples in real trades

• Build a pre-event plan that assumes either a regime headline (rare but explosive) or a path surprise (common and tradeable).
• Prefer one core pair (USD/CHF or EUR/CHF) at a time; add crosses later only if spreads normalise.
• Stick to the Playbook templates: Breakout on path surprise, Fade the knee-jerk, Q&A reversal.

Playbook: Trading SNB Decisions with AvaTrade

Timeline & Prep (what to do, and when)

T–24h to T–2h

• Define bias: Are markets pricing a hawkish/dovish path? Note where USD/CHF and EUR/CHF stalled recently.
• Set price alerts at the prior day’s high/low and at obvious supply/demand zones.
• Decide trade type (breakout vs mean-reversion) and pre-commit to position size and maximum daily loss.

T–60m

• Load two OCO templates (one breakout, one fade) with smaller– than–     usual
• Tighten watchlist to: USD/CHF, EUR/CHF, 1–3 CHF crosses you actually trade (e.g., AUD/CHF, CAD/CHF).
• If you anticipate whipsaws, consider AvaProtect on the first attempt only.

T–5m to T+5m (statement drops at 09:30 CET)

• No manual chasing in the first 30–90 seconds. Let orders work; spreads can widen.
• Confirm direction with the second minute candle and momentum through the first pullback.

T+5m to T+45m (press Q&A)

• Keep the risk budget for Q&A. A guidance twist can invert the first move.
• If flat, reload the breakout template only if momentum aligns and the prior swing holds.

T+45m to EOD

• If the day trends, hold a reduced runner with a trailing stop.
• If the day ranges, take profits at pre-marked levels; avoid “one more trade” fatigue.

Setups (clear triggers, clear exits)

1. A) Breakout on Path Surprise (primary)

When: front-end rates and first pullback both confirm direction.
Trigger: break of event high/low on the first proper pullback (not the first spike).
Template (OCO):

• Entry stop: above/below event high/low.
• Stop-loss: beyond the opposite wick of the event bar (or a fixed ATR multiple).
• Take-profit 1: equal to the event bar’s range.
• Take-profit 2 (runner): trail under/over swing lows/highs.
  Sizing:5× normal risk per attempt; at most two attempts pre–Q&A.
  AvaProtect: optional on the first attempt if the range is unusually large.

1. B) Fade the Knee-Jerk (secondary)

When: front end snaps back and 2–3y OIS stays flat (i.e., no path change), price returns inside pre-event range.
Trigger: failed breakout (wick reclaim) back into range, plus momentum divergence on your preferred timeframe.
Template (OCO):

• Entry limit: inside the range after wick reclaim.
• Stop-loss: beyond the extreme wick.
• Take-profit: mid-range first; opposite edge if volatility compresses.
  Sizing:3–0.4× normal; only if spreads normalise.

1. C) Q&A Reversal (event twist)

When: statement neutral, Q&A adds hawkish/dovish colour; FX flips with volume.
Trigger: break of the Q&A swing level in the new direction.
Template (OCO):

• Entry stop: through the Q&A swing.
• Stop-loss: under/over the Q&A base.
• Take-profit: prior event extreme; trail thereafter.
  Sizing:4–0.5× normal; one attempt only.

1. D) Session Continuation (late trend)

When: London close approach with higher lows/lower highs intact; pullbacks shallow.
Trigger: break of structure after a tight consolidation.
Template (OCO):

• Entry stop: through the consolidation edge.
• Stop-loss: The other side of the box.
• Take-profit: measured move = box height; leave a runner if H4 trend aligns.
  Sizing:3×; target clean, low-friction fills.

Risk Controls (that actually get used)

• Daily loss cap: stop for the day at –1R to –1.5R on event sessions.
• Attempts: max two before Q&A; one post-Q&A.
• Slippage plan: use OCO only; avoid market orders in the first minute.
• Correlation: prefer USD/CHF or EUR/CHF, not both at full size.
• Hedging via size: reduce exposure instead of adding “insurance” trades in other pairs.

What to Trade at AvaTrade

• Core pairs: USD/CHF, EUR/CHF.
• Selective crosses: AUD/CHF, CAD/CHF, GBP/CHF (higher beta, use smaller size).

Practise these templates in a Demo Account first; when execution is second nature, switch to a Real Account.

Swiss National Bank main FAQs

• What exactly moves CHF on an SNB day — the rate change or the words?

  Mostly the path implied by the statement, forecasts, and press Q&A. A “hold” with hawkish guidance can move CHF more than a small hike with dovish hints. Confirm with SARON/OIS repricing as well as price in USD/CHF and EUR/CHF.

   
• Which pairs are best to trade around SNB decisions?

  Start with USD/CHF and EUR/CHF. Add selective crosses (AUD/CHF, CAD/CHF, GBP/CHF) only if liquidity normalises; they carry more beta and whipsaw risk.

   
• How do I manage slippage and spread widening at release?

  Use OCO orders instead of market orders in the first minute, size smaller than usual, and place stops beyond the event wick (or a sensible ATR multiple). Limit attempts (e.g., two pre–Q&A, one after).

   
• What’s the typical timing and format of the announcement?

  Quarterly Monetary Policy Assessment at 09:30 CET with a statement, then a press conference. Markets often make a second meaningful move during the Q&A if guidance shifts.

   
• How do I tell if the initial spike will stick or fade?

  Cross-check: front SARON moves 5–10 bps in one direction and 2–3y OIS follows → higher chance of continuation. If the front end snaps back and the belly doesn’t move, fading the knee-jerk is more attractive.

   
• How does FX intervention risk show up in price?

  Tighter SNB language on “monetary conditions” can add a franc strength premium even without a rate move, accelerating declines in USD/CHF and EUR/CHF. Expect faster moves and fewer friendly pullbacks.