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Swiss National Bank ready to act on CHF

Discussion in 'Fundamental Analysis' started by ForexLive, Mar 31, 2016.

  1. ForexLive

    ForexLive Forum Member

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    Comments from Nordea Markets on the Swiss franc and SNB The bank hasn't changed its tone lately. Its latest message is that the CHF is "significantly overvalued", which we agree with. The inflation forecasts were adjusted lower at the recent meeting (17 March), from -0.5% in 2016 to -0.8%, levels critical enough not to act. This time intervention is easier, as housing market momentum has been falling, suggesting extra money supply won't be a problem at this point. Note, also, the SNB has been rather passive over the past few quarters, so they would not see a big trouble to scale up for a change, if needed. thus remains the best funding currency for example for Emerging Market FX long positions.

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