12 Feb 2015
SNB may have done enough; Targeting 1.10 EUR/CHF?
FXStreet (Guatemala) - Sebastien Galy, analyst at Societe Generale explained that the SNB may well be correct that current negative rates should be enough for the EUR/CHF to drift significantly higher.
Key Quotes:
"We presume it is targeting 1.10 but find EUR/CHF 1.14 as the cyclical fair value."
"The SNB may want to accelerate this process as we find that sharp increases in the CHF empirically have a disproportionately large deflationary shock."
Key Quotes:
"We presume it is targeting 1.10 but find EUR/CHF 1.14 as the cyclical fair value."
"The SNB may want to accelerate this process as we find that sharp increases in the CHF empirically have a disproportionately large deflationary shock."