SNB meeting preview from 4 banks

Discussion in 'Fundamental Analysis' started by ForexLive, Dec 10, 2015.

  1. ForexLive

    ForexLive Forum Member

    Sep 2, 2015
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    Preview of the Swiss National Bank meeting today from Societe Generale, Nomura, Credit Suisse, and Credit Agricole Via eFX They're luck's in. With EUR/USD above 1.10 there is no pressure to the downside in EUR/CHF. In January the market was (very) short CHF and building a short EUR position that wasn't yet very big. That was a recipe for pressure on the floor to build and at the same time, for a huge move once the floor was broken. Now, the market is more balanced, and Euro shorts are being reduced, not built. A rate cut may still be necessary in due course, because the inability of the Swiss financial system to re-cycle excess savings post-GFC hasn't been resolved, but judging by how unpopular it would be with pension providers, let alone Joe Public, there's a good chance they do nothing, and that EUR/CHF holds comfortably above 1.0750 and within the recent range. ps. Earlier:

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