The latest SNB jawboning
- Strong CHF a challenge for Swiss economy
- SNB stands ready to act if needed on Italy vote
- Closely watching how banks deal with negative rates
- CPI data suggests current policy should be continued
- Doesn't see recent cash hoarding in Switzerland
- Can't exclude more rate cuts if necessary
- Negative rate can't be lowered indefinitely
No reaction from CHF. There are plenty of calls out there for USD/CHF longs.
"CHF remains our favoured currency to position for USD strength, our model, technical and macro scores summing to an aggressive -8, a strong cue to buy USD/CHF on weakness. We lift our buy level in USD/CHF to 0.9990, stop 0.9890," Westpac wrote in a note to clients yesterday.
