SNB seen ‘on hold’ this week – Danske Bank

The Swiss central bank is seen keeping its monetary conditions unchanged at this week’s meeting, noted Valtteri Ahti, Chief Strategist at Danske Bank.

Key Quotes

“The SNB is due to have its quarterly meeting this Thursday and, while upside inflation risks – as we look for more broadly across regions – will be welcomed by the Swiss central bank, we still deem it is too early for the SNB to change its rhetoric regarding CHF”.

“Albeit EUR/CHF rallied last week, the cross is still far off the 1.20 level where we think the SNB will need to see it before shifting into ‘exit’ mode”.

“Thus, we think the SNB will keep a phrase regarding its ‘currency preferences’, which should help support another leg higher in EUR/CHF over coming months”.