March 07, 2024 11:53 GMT
HSBC Wary Of Countering CHF Weakness Short-Term, Looking For Catalysts To Promote Turn
CHF
HSBC write “recent CHF weakness has been aligned with a shift in rate differentials.”
- “The move may be stretched as Swiss inflation dynamics do not look that dissimilar to the Eurozone.”
- “A reversal lower in G3 rates or a less dovish SNB in March are potential catalysts for a rebound in the CHF.”
- “A sticky February inflation print and little sign of SNB FX purchases are two local hurdles that have already been overcome and could leave the path more open for a stronger CHF as and when rate dynamics start to turn.”
- Still, HSBC remains “wary” of fighting CHF weakness in the short-term.
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