SNB’s Maechler says CHF still highly valued and even somewhat stronger in recent months
Swiss National Bank governing board member in interview with Handelszeitung
So that will be the concern over USDCHF falls that I’ve been banging on about in recent months. The SNB have 35% of reserves in USD and long at unpleasant levels hence the ongoing need to support down here.
EURCHF up to 4 month highs this morning so no issues there.
- it is hardly foreseeable that CHF demand will fundamentally change
- situation on ccy market remains fragile, interest rate spread to foreign rates still very small
- at present there is no special inflation dynamism in Switzerland
- we also see little inflation momentum for next year
- premature raising of interest rates would be counterproductive
- SNB still has leeway in both directions on changing size of balance sheet
An early sight of these comments will help to explain the pop higher in USDCHF and EURCHF earlier.
USDCHF currently 0.9508 after 0.9522 highs with sellers poised around 0.9530 and 0.9550. EURCHF 1.1784 from 1.1795 with 1.1800 sell interest capping so far.


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