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 August 19, gold prices (XAUUSD) maintained a weak rebound intraday, rising about 0.2% on the day to trade near $4,340. Earlier on Tuesday, gold prices fell near
West Texas Intermediate (WTI) oil price extends its gains for the fourth consecutive day, trading around $84.80 per barrel during the Asian hours on Wednesday.
WTI consolidates below $84.50, two-week top as bullish bias remains amid Hormuz standoffWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends its consolidative price move through the first half of the European session and currently trades near the $84.25-$84.30 area, close to a two-week high set earlier this Tuesday.
Australian Dollar gains as US Dollar struggles amid fading Fed rate hike betsAUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
AUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).
As of the European session on August 17, gold prices (XAUUSD) were trading above $4,400, up about 0.7% on the day and reaching an intraday high of $4,416.43, extending last Friday's gains
Related Instrument
