Forex Flash: CHF: Fade CS negative rates news – Nomura

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS