2016.03.0908:04:00UTC+00Swiss Franc Weakens Amid SNB Intervention Rumors

The Swiss franc traded in a negative territory against its major counterparts in Europe on Wednesday, amid rumors of the Swiss National Bank intervention, ahead of the European Central Bank decision that is likely to expand stimulus measures.

Since the ECB is expected to loosen monetary policy again tomorrow, markets are blaming a possible SNB intervention as a weak euro would affect the currency exchange rate.

Majority of economists expect that the SNB may be forced to cut rates further below zero or intervene more heavily, if the ECB adds more stimulus.

Sentiment was underpinned by rising European stocks, in the wake of rally in oil prices.

The currency has been weaker against most major rivals in Asian deals.

The franc depreciated to 111.91 against the yen, a level unseen since October 2013. The next possible support for the franc-yen pair is seen around the 110.00 level.

Data from the Bank of Japan showed that the M2 money stock climbed 3.1 percent on year in February, coming in at 919.3 trillion yen.

That was shy of expectations for an increase of 3.2 percent, which would have been unchanged from the January reading.

The franc fell to a 9-day low of 1.0037 against the greenback and near a 3-week low of 1.4218 versus the pound, off its early highs of 0.9942 and 1.4133, respectively. If the franc extends slide, 1.015 and 1.44 are likely seen as its next support levels against the greenback and the pound, respectively.

The Swiss currency declined to 1.1000 against the euro, its lowest since February 23, and held steady thereafter. The franc is seen finding support around the 1.11 area.

Looking ahead, U.S. wholesale inventories for January and U.S. crude oil inventories data are set to be published in the New York session.