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.
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