Back
24 Feb 2015
EUR/CHF poised for further upside? – Danske Bank
FXStreet (Edinburgh) - In the view of analysts at Danske Bank, the Swiss franc could extend its depreciation in the upcoming months backed by SNB intervention.
Key Quotes
“The weekly SNB sight deposits of domestic banks fell slightly last week to CHF382bn (from CHF394bn last week), suggesting the SNB has been sidelined on intervention in the past week”.
“Indeed, it appears that the SNB is satisfied with EUR/CHF above the 1.05 level for now - and will be looking increasingly at the effective exchange rate going forward”.
“The latter remains at pre-exit levels suggesting SNB will still be keen to see CHF drop on a 12M horizon in our view”.
Key Quotes
“The weekly SNB sight deposits of domestic banks fell slightly last week to CHF382bn (from CHF394bn last week), suggesting the SNB has been sidelined on intervention in the past week”.
“Indeed, it appears that the SNB is satisfied with EUR/CHF above the 1.05 level for now - and will be looking increasingly at the effective exchange rate going forward”.
“The latter remains at pre-exit levels suggesting SNB will still be keen to see CHF drop on a 12M horizon in our view”.