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SNB Uncertainty Places CHF in Spotlight, EURCHF Vols Surge

FOREX
Homepagemarkets-real-timeBulletMarketsForeign Exchange BulletsSwiss National Bank Market News
  • Thursday’s decision from the Swiss National Bank could go either way and given the impressive recovery for the local currency, CHF volatility will be in the spotlight. Market pricing sees a 25bps cut more likely, but analysts are tilting slightly towards a policy rate hold on average. The full MNI SNB preview can be found here.
  • The Swiss Franc has appreciated in recent weeks, substantially reversing its weakness from earlier in the year amid slightly hawkish commentary from SNB President Jordan regarding potential FX selling and a potential increase in the neutral real interest rate.
  • While the Swiss Franc looks generally strong from a technical perspective, the potential for surprise and the associated heightened vols, leaves two-way risks at the fore. In particular, AUDCHF has been showing relative resilience and the close proximity of the Bank of England decision (MNI BOE preview here) boosts the potential sensitivity for GBPCHF.
  • Full piece here:

    • FX Market Analysis - CHF 19-06.pdf


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  • Thursday’s decision from the Swiss National Bank could go either way and given the impressive recovery for the local currency, CHF volatility will be in the spotlight. Market pricing sees a 25bps cut more likely, but analysts are tilting slightly towards a policy rate hold on average. The full MNI SNB preview can be found here.
  • The Swiss Franc has appreciated in recent weeks, substantially reversing its weakness from earlier in the year amid slightly hawkish commentary from SNB President Jordan regarding potential FX selling and a potential increase in the neutral real interest rate.
  • While the Swiss Franc looks generally strong from a technical perspective, the potential for surprise and the associated heightened vols, leaves two-way risks at the fore. In particular, AUDCHF has been showing relative resilience and the close proximity of the Bank of England decision (MNI BOE preview here) boosts the potential sensitivity for GBPCHF.
  • Full piece here:

    • FX Market Analysis - CHF 19-06.pdf