VIEW: Friday saw ING note that "a view...>

EURO-SWISS: VIEW: Friday saw ING note that "a view is growing that the 1.05

level in EUR/CHF is some kind of new FX floor for the Swiss central bank to

defend. We see three reasons why this perceived floor may crumble:

- i) the inflation-adjusted CHF index is not particularly strong

- ii) the SNB will struggle to match ECB printing presses this year

- iii) Washington is keeping a close eye on intervention

- We do not think 1.05 is a new line in the sand, primarily because we do not

think the SNB has the tolerance to match the ECB printing presses. But over time

EUR/CHF will be drifting down to parity. Whether that is this summer or next

year remains to be seen. But certainly now is not the time to start turning

bullish on EUR/CHF. In fact, we have only briefly been upbeat on EUR/CHF once

since the 2008/09 financial crisis, during the 2017 European re-rating story - a

story quickly snuffed out as the 2018 trade war unfolded."