The Swiss National Bank reported total sight deposits for the week ending 29 August at CHF 472.3 billion, compared to CHF 469.5 billion the week before.
Domestic sight deposits increased to CHF 444.7 billion from CHF 442.5 billion in the previous week.
Swiss Sight Deposits Update
Swiss sight deposits have rebounded to their highest level since the last week of July. These elevated levels have persisted following a decision in June.
The recent increase in sight deposits indicates the Swiss National Bank is actively intervening in the currency market. We are seeing them sell francs to buy foreign currency, an action designed to prevent the franc from strengthening further. This suggests a continued effort to manage the currency’s value, which has been ongoing since their June 2025 policy meeting.
This intervention creates a potential floor for currency pairs like EUR/CHF and USD/CHF. For derivative traders, this means the downside on these pairs may be limited in the near term by central bank action. This makes strategies that benefit from stability or a weaker franc more appealing.
Trading Strategy Considerations
Looking back, we saw EUR/CHF dip towards the 0.9550 level in early August 2025 before bouncing back, and these interventions appear aimed at defending such levels. With the latest Swiss inflation data from August 2025 coming in at a soft 1.3%, the SNB has a strong incentive to prevent a stronger franc from pushing inflation down even further. This is a pattern we’ve observed repeatedly since the significant rate cuts that began in 2024.
Considering this, selling out-of-the-money put options on EUR/CHF could be a viable strategy over the next few weeks. The premium collected offers a yield, while the SNB’s actions provide a buffer against a significant, unexpected drop. We should target expirations beyond the next SNB policy meeting on September 18, 2025, to capture any related volatility.
While the SNB’s presence can suppress realized volatility, implied volatility may remain supported due to the underlying risk of a policy surprise. This presents opportunities for traders who believe the SNB will succeed in keeping the franc within a range. The primary risk remains a sudden change in the bank’s stance, a lesson we all learned from the events of January 2015.
