Gains On Referendum Results

The Swiss franc has picked up a light bid at the start to the week, after voters rejected two proposals that would (1) ban the funding on arms producers and (2) mandate holding multinational corporations liable for environmental and human rights abuses committed abroad. A study by Profundo revealed that the SNB is among Swiss banks with the biggest exposure to the defence industry. The central bank opposed the first proposal, which would oblige it to offload ~CHF20bn worth of stocks, while the federal gov't argued that both initiatives would hurt the economy.

• USD/CHF has shed 20 pips and last deals at CHF0.9043. A fall through the 76.4% retracement of the Nov 9 - 11 rally at CHF0.9033 would expose the low print of Nov 9 located at CHF0.8984, the worst level since 2015. Bulls need a rebound above the 50-DMA/Nov 23 high at CHF0.9134/48 to regain poise.
• Looking ahead, Switzerland reports retail sales today, with Q3 GDP due Tuesday & CPI due Wednesday.