CHF: No action from SNB today – Danske Bank

FXStreet (Delhi) – Research Team at Danske Bank, expects no action from SNB today following the 'light easing menu' from the ECB (previously we expected a 10bp cut).

Key Quotes

“Following the ECB meeting, EUR/CHF jumped and pricing that the SNB should cut near term was greatly reduced. That said, if SNB keeps the powder dry today there is a downside risk to EUR/CHF near term, but given that the cross remains in the high end of the SNB 'comfort zone', we believe SNB will continue to use intervention as the first line of defence against any unwarranted CHF strength.”