CHF: Ray of light - ING
EUR/CHF has come back bid after a brief sell-off in Asia on the break-down of German government talks and there does not appear an obvious catalyst this week for EUR/CHF to break the 1.1710/20 highs, even though that should be the direction of travel over coming months, according to analysts at ING.
Key Quotes
“In terms of local inputs. Tuesday sees the October trade release and Wed. sees SNB’s Jordan speak on what Switzerland’s large current account surplus means for monetary policy – presumably a justification of the super-loose policy to offset a strong CHF.”
“More interesting might be Friday’s release of 3Q’s Industrial Production data. This has been showing some signs of life and any surprises could see the market re-assess 3Q17 Swiss GDP (released on the 30th). Swiss GDP has been more subdued than that of the Eurozone this year – an upturn would be welcome, but we doubt it would shift the SNB’s position of unchanged policy well into 2019.”