SNB does not like inflation, making Franc a rather interesting currency – SocGen
Kit Juckes, Head of FX Strategy at Société Générale, analyzes the Swiss Franc outlook. He believes that the CHF is an interesting currency.
EUR/CHF is lagging EUR/USD – a feature this time, not a bug
“The speed with which the Swiss banking system was stabilised reinforces Franc’s safe-haven status. That suits the SNB now, more than usual.”
“Whereas in the past, EUR/CHF would fall when EUR/USD did (the Swiss Franc falling by less than the euro against the Dollar) and rise when EUR/USD did, EUR/CHF has decoupled from EUR/USD, allowing the CHF to rise as fast against a falling Dollar, as the Euro does.”
“The SNB appears to be more tolerant of a stronger Swiss Franc than in the past; at the same time as being less tolerant of a weaker currency in these inflationary times. Which makes the Franc a rather interesting currency.”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
