SNB unlikely to object to modest depreciation of the CHF – Standard Chartered
Source Fxstreet
The Swiss Franc (CHF) has been the weakest performer in G10 year-to-date. Economists at Standard Chartered analyze CHF outlook.
It would take a very hawkish SNB to strengthen the CHF further
The CHF has been the weakest performer YTD in G10 and we expect this subpar performance to continue.
It would take a very hawkish SNB to strengthen the CHF further and we don’t see much reason for them to go in that direction, even if they hold steady in March and do not commit to a cut in June.
By most measures, the CHF real effective exchange rate is well above historical averages, and we doubt that the SNB would object to modest depreciation.
Barring a geopolitical shock, we expect it to be a funding currency for both G10 and EM trades.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
As of the Asian session on September 11, gold prices (XAUUSD) remained in weak consolidation today after dropping sharply to near $4,300 on Thursday, with the latest price trading around
US August CPI lands tonight: after a 5.4% PPI shock, will the Fed hike on September 16?US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.
International oil prices continued to advance rapidly this week. On Thursday Eastern Time, WTI crude (USOIL) broke through the $100/barrel mark, closing at $103.94, up 7.51%; Brent crude
TradingKey Daily Market Briefing: WTI Oil Tops $100, US Stocks Fall for 4th Day, Apple Bucks Trend, CPI AheadTracking Market TrendsTradingKey - On September 10 Eastern Time, the three major US stock indices fell for the fourth consecutive trading day. US August PPI showed upstream price pressures continued t
Tracking Market TrendsTradingKey - On September 10 Eastern Time, the three major US stock indices fell for the fourth consecutive trading day. US August PPI showed upstream price pressures continued t
On Friday, September 11 (ET), the U.S. Bureau of Labor Statistics will release the Consumer Price Index (CPI) for August, the final major inflation report before the Federal Reserve's Sep
Related Instrument
