In the view of the analysts at Barclays, the Swiss National Bank (SNB) is expected to make no changes to its monetary policy while reiterating its stance to intervene in the fx markets.
“We expect no change to SNB policy or rhetoric.
Rate unchanged at -0.75%.
Target range for 3m Libor at -1.25/-0.25%.
We envision no changes to the exemption from negative deposit rates.
We expect the SNB to re-iterate its commitment to intervene in FX markets to curb unwanted appreciation.
While changing the language of the December statement to suggest that the franc's depreciation has recently stalled, following c.2.5% CHF effective exchange rate appreciation since December.
See the limited impact on EURCHF as a result.
We continue to project trend franc depreciation, as the SNB lags other central banks in normalizing policy.
Yet, a set of low-probability SNB actions introduce asymmetric downside risks to EURCHF and our forecasts.
In particular, an acknowledgment by the SNB that the CHF is not so very overvalued anymore, following c.6% REER depreciation H2 2017, or any signs of SNB fatigue or discomfort with the current size of the balance sheet, could prove market moving, yet the timing is hard to gauge.”
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.