10 Feb 2015
SNB could cut its deposit rates further in March – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Jens Pedersen believes the Swiss monetary authority could announce another cut of the sigh deposits rate.
Key Quotes
“Yesterday's weekly sight deposit figures from the SNB suggested intervention dropped markedly last week”.
“This suggests that while the SNB still seems to have a preference for intervention (versus rate cuts), the central bank may have stepped back a little”.
“This is not to say that another round of EUR weakness could not put renewed pressure on EUR/CHF but what we know so far is that SNB appears to have a preference for using intervention to curb CHF strength”.
“Importantly, we also look for another cut in the sight deposit rate at the March SNB meeting to support the SNB's attempt to steer EUR/CHF higher”.
Key Quotes
“Yesterday's weekly sight deposit figures from the SNB suggested intervention dropped markedly last week”.
“This suggests that while the SNB still seems to have a preference for intervention (versus rate cuts), the central bank may have stepped back a little”.
“This is not to say that another round of EUR weakness could not put renewed pressure on EUR/CHF but what we know so far is that SNB appears to have a preference for using intervention to curb CHF strength”.
“Importantly, we also look for another cut in the sight deposit rate at the March SNB meeting to support the SNB's attempt to steer EUR/CHF higher”.