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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- The worsening outlook amid rising Covid uncertainty has been weighing on the Euro in recent weeks (relative to the Swiss franc).
- EURCHF fell below its March 2020 low of 1.0580 last month and tested a local low at 1.0374 on Monday.
- Historically, CHF appreciation has been an issue for SNB policymakers as a strong franc (vs. Euro) has been generally associated with a fall in Swiss inflation.
- The surge in fuel and food prices this year has been supporting Swiss inflation, leading to a significant divergence between the two times series (EURCHF and Swiss CPI, see chart).
- However, will the CHF strength drag down Swiss CPI in the medium term when inflationary pressures start to ease globally?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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