Discussion points on EUR/CHF ahead of the SNB – UBS

By FXStreet FXStreet (Córdoba) – The Swiss National Bank (SNB) will present its monetary assessment and potential policy changes this Thursday and according the UBS analyst team the situation is rather tricky for several reasons.

Key Quotes

“The most obvious one is that the SNB’s meeting is sandwiched between last Thursday’s key European Central Bank (ECB) one and ahead of the US Federal Open Market Committee’s (FOMC), which could result in the first US rate hike in years.”

“Over the last month, the EUR/CHF has traded largely sideways. But its price moves around this trend have increased considerably, given that the expectations about SNB policy actions have oscillated in recent weeks. Overall, we conclude there is more downside than upside for the EUR/CHF.”

“Our base case for Thursday, what is likely to emerge from this SNB meeting is some CHF strength, leading to EUR/CHF 1.06. Some hope for SNB action will remain, but it is likely to be dashed. Nonetheless, one should not expect any sharp moves, since investors are reducing their risk-taking ahead of the Fed meeting a week later.”
For more information, read our latest forex news. …read more

Source:: FX Street