SNB DOES NOT LIKE INFLATION, MAKING FRANC A RATHER INTERESTING CURRENCY – SOCGEN

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Kit Juckes, Head of FX Strategy at Société Générale, analyzes the Swiss Franc outlook. He believes that the CHF is an interesting currency.


EUR/CHF is lagging EUR/USD – a feature this time, not a bug

“The speed with which the Swiss banking system was stabilised reinforces Franc’s safe-haven status. That suits the SNB now, more than usual.”


“Whereas in the past, EUR/CHF would fall when EUR/USD did (the Swiss Franc falling by less than the euro against the Dollar) and rise when EUR/USD did, EUR/CHF has decoupled from EUR/USD, allowing the CHF to rise as fast against a falling Dollar, as the Euro does.” 


“The SNB appears to be more tolerant of a stronger Swiss Franc than in the past; at the same time as being less tolerant of a weaker currency in these inflationary times. Which makes the Franc a rather interesting currency.”

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