US: MNI POLITICAL RISK - Trump Xi Meeting Confirmed For Thursday

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Switzerland and the US "reconfirmed [...] to avoid manipulating exchange rates or the international monetary system to prevent effective balance of payments adjustment or to gain an unfair competitive advantage".

• SNB Chairman Schlegel unsurprisingly has reaffirmed last Thursday at the quarterly meeting press Q&A that the SNB remains willing to be active in the FX market to ensure monetary policy conditions remain appropriate.
• The announcement suggests that there is an ongoing dialogue between some Swiss and US authorities following the 39% tariff announcement by the US on Swiss imports on August 1. While the SNB judges the aggregate effects of the tariffs on the Swiss economy as "limited" according to last week's Q&A, there appears to have been limited progress at best by Swiss authorities to negotiate lower US rates going forward.
• Full release here: https://home.treasury.gov/news/press-releases/sb0266

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