FXstreet.com (Barcelona) - Credit Suisse yesterday joined UBS, State Street, Bank of New York Mellon and RBC in deciding to charge interbank clients for the service it provides in holding CHF cash deposits, above a certain threshold notes Nomura Strategist Geoffrey Kendrick.

He believes that the degree that banks pass on charges to their clients makes holding CHF deposit accounts cost marginally more. However, relevant Swiss bank flows have not turned sufficiently to offset the CHF 10bln a month current account surplus enjoyed by Switzerland.

He writes, “Indeed, with Swiss banks continuing to deliver and/or shrink balance sheets the required CHF selling is unlikely to materialise any time soon.” He believes that the bounce in EUR/CHF created by the Credit Suisse news today provides an opportunity to sell EUR/CHF, not chase it higher.