SNB maintains course - Swissquote

Yann Quelenn, market analyst at Swissquote, argues that these periods of uncertainty of having more margins to defend the Swiss franc seem to define the SNB’s strategy as the currency is still largely seen as overvalued.

Additional quotes

"Unsurprisingly, the Swiss central bank has decided to steer straight ahead, holding interest rates unchanged at -0.75%. Even though defending the franc is a clear SNB priority, rates will not be pushed much lower out of fear of boosting capital outflows. Recent strong intervention from the Swiss central bank pushed the EURCHF towards 1.0800 before bouncing lower."

"In terms of data, retail sales saw a drop in January at -1.4% y/y, while Switzerland’s Q4 2016 printed below expectations at 0.6%.The SNB’s wait-and-see approach is clearly set to continue as Europe remains on tenterhooks despite Geert Wilder’s Populist Party defeat. In the short-term, it is likely that we will see further euro weakness against the CHF."