The pressser with the SNB head Thomas Jordan

  • Higher short-term inflation forecast due to increased oil prices and weakening franc
  • SF is still highly valued
  • Willingness to intervene in FX market remains important
  • Long-tern inflationary pressure in Switzerland has not increased
  • Expansive mon pol remains appropriate to support trecovery and price stability

SNB’s Maechler

  • Situation in FX market remains fragileRisk of renewed franc apprecitaion remains, particularly if risk aversion returns
  • Investors are prepared to pay a higher premium to hedge against franc appreciation rather than depreciation

Nothing we haven’t already heard before. EURCHF remains modestly bid and now at a 1.1682 high. USDCHF 0.9880. The 0.9880/90 area had been pretty good support recently so expect some decent resistance here.

Ryan Littlestone

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