27 Jan 2015
CHF yet to stabilise – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that CHF has been volatile driven by positioning & SNB Danthine’s comments that intervention is an option.
Key Quotes
“CHF is strong, having at one point rallied over 1% against the USD and 0.5% against EUR, however into the NA open EURCHF is hovering back close to parity. The combination of yesterday’s large increase in SNB sight deposits and comments from the SNB’s Danthine have been the core focus.”
“SNB Danthine suggested in a Tages Anzeiger article that the central bank is fundamentally prepared to intervene and that in his view CHF has not yet stabilized, with ongoing overshooting; in terms of negative interest rates he sees this as going as far as the SNB can go, as there are limits to the effectiveness of negative rates determined by physically holding cash.”
Key Quotes
“CHF is strong, having at one point rallied over 1% against the USD and 0.5% against EUR, however into the NA open EURCHF is hovering back close to parity. The combination of yesterday’s large increase in SNB sight deposits and comments from the SNB’s Danthine have been the core focus.”
“SNB Danthine suggested in a Tages Anzeiger article that the central bank is fundamentally prepared to intervene and that in his view CHF has not yet stabilized, with ongoing overshooting; in terms of negative interest rates he sees this as going as far as the SNB can go, as there are limits to the effectiveness of negative rates determined by physically holding cash.”