EUR/CHF: LEVELS NEAR 0.9500 AND POSSIBLY A LITTLE BELOW ARE LIKELY LATER THIS YEAR – ING
The Swiss Franc has understandably weakened after the surprise hold in the policy rate. Economists at ING analyze CHF outlook.
Temporary setback for the Swiss Franc
The SNB surprised today by deciding to keep its key rate at 1.75%, whereas the consensus was for it to rise by 25 bps to 2%. However, the SNB has said that it will still be using the exchange rate to "provide appropriate monetary conditions" and to do this will likely continue to sell FX.
Looking ahead, the strong Dollar environment – keeping USD/CHF bid – means that the SNB will have to manage EUR/CHF lower to get the nominal CHF appreciation it needs. That is why we suspect that any near-term spike in EUR/CHF is not sustained and that as long as the SNB is leaning hawkish, levels near 0.9500 and possibly a little below are likely later this year
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.