Switzerland SNB Schlegel Speech

Info

History

Chart

Impact:

Medium

Source: Swiss National Bank

Next Release:

Date:

Period:

What Does It Measure?

The SNB Schlegel Speech serves as a qualitative assessment of Switzerland’s monetary policy stance and economic outlook as articulated by a senior official of the Swiss National Bank (SNB). This speech directly influences expectations regarding inflation, interest rates, and overall financial stability in Switzerland, thus acting as a signal for investors regarding future policy actions.

Frequency

The Schlegel Speech is delivered during scheduled public communications, usually on an irregular basis throughout the year, with no fixed release date.

Why Do Traders Care?

Traders closely monitor this speech because it can substantially impact financial markets, including the Swiss franc (CHF), equities, and bonds, based on the conveyed tone and insights. A hawkish tone may result in a strengthening of the CHF and downward pressure on equities, while a dovish stance may lead to the opposite effect.

What Is It Derived From?

The content of the speech is typically derived from current economic conditions, analytical reports, and trends observed by the SNB’s research and policy teams. This includes insights from data on inflation, employment, and growth to adjust their monetary policy narrative as necessary.

Description

The SNB Schlegel Speech signifies a platform for the SNB to communicate its current thoughts on monetary policy and the economy, covering aspects such as inflation expectations, interest rate considerations, and risks to economic stability. This presentation can often serve as a precursor to future monetary policy adjustments.

Additional Notes

The Schlegel Speech can be viewed as a coincident economic indicator, reflecting current economic conditions and possible future trends. It is pertinent to note that it feeds into the broader context of Switzerland's economic landscape, juxtaposed with other central bank communications globally, aiding in an investor’s comparative analysis.

Bullish or Bearish for Currency and Stocks

The actual tone of the speech compared to market expectations determines its impact: if the speech indicates a hawkish stance leaning towards tightening, it would be assessed as bullish for the CHF and bearish for stocks. Conversely, a dovish outlook suggesting economic support would be bearish for the CHF but bullish for equities.

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