The SNB may have been actively intervening – BofA
The Bank of America (BofA) recently conveyed its cautious optimism over the EUR/CHF prices.
The bank said, “Our bias remains for higher EUR/CHF into year-end but we reiterate that any appreciation will be contained to the recent ranges as the policy divergence theme between the ECB and SNB is not compelling enough to trigger asset reallocation from Swiss assets and towards EZ assets.”
“We are cognizant that the SNB will become increasingly uncomfortable should any CHF rallies be accompanied by concomitant rise in broader asset market volatility,” added BofA.
BofA relies on the weekly sight deposit data to back the chatters that the Swiss National Bank (SNB) is actively intervening. Although the bank cites the SNB intervention as limiting downside, “A normalization in risk and renewed rises in real and nominal yields,” were spotted as the catalysts to watch for the bulls.
Read: USD/CHF remains poised to extend losses below 0.9150 ahead of Swiss data
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