CHF: Extended support – Danske Bank

Sandeep Kanihama FXStreet Contributor

According to Danske Bank analysts, CHF support extended further after USD/CHF went through its 2019 low.

Key Quotes

“It is remarkable to us how CHF has seen broad-based support since the central bank (SNB) met in December, strengthening despite fading political risks. One interpretation is thus that the CHF is strengthening as markets have begun expecting a prolonged period of low inflation (CHF positive) without adding to expectations that SNB could offset this via further rate cuts (potentially CHF negative).”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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