SNB does not like inflation, making Franc a rather interesting currency – SocGen
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Kit Juckes, Head of FX Strategy at Société Générale, analyzes the Swiss Franc outlook. He believes that the CHF is an interesting currency.
“The speed with which the Swiss banking system was stabilised reinforces Franc’s safe-haven status. That suits the SNB now, more than usual.”
“Whereas in the past, EUR/CHF would fall when EUR/USD did (the Swiss Franc falling by less than the euro against the Dollar) and rise when EUR/USD did, EUR/CHF has decoupled from EUR/USD, allowing the CHF to rise as fast against a falling Dollar, as the Euro does.”
“The SNB appears to be more tolerant of a stronger Swiss Franc than in the past; at the same time as being less tolerant of a weaker currency in these inflationary times. Which makes the Franc a rather interesting currency.”
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