Swiss inflation pause

November inflation in Switzerland fell slightly, allowing the Swiss National Bank to sign with relief. This allows the central bank to avoid tightening monetary policy. The bank and most exporters are pleased that the CHF has weakened 5.5% over the past year.

Markets are pricing in the first interest rate hike of only 0.25% only in March 2019. In 2018 the franc will remain a favourite funding currency. We remain positive on EUR/CHF and USD/CHF: dips are opportunities to reload long positions.

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